INDUSTRIAL PARK (IP) LAND
SUPPLY: INDUSTRIAL LAND STOCK CONTINUES TO EXPAND
As of Q3 2026, cumulative industrial park land supply in Northern Vietnam reached 25,455 ha, up 0.9% QoQ and 7.4% YoY. Over the first nine months of 2026, the market added nearly 1,500 ha from 9 new projects, indicating that supply continued to expand at a meaningful scale while widening the range of site options available to sub-lessors. Notably, new supply was not confined to traditional industrial hubs such as Bac Ninh and Hai Phong, but was also recorded in Ninh Binh and Phu Tho, pointing to a broadening geographic footprint of supply growth across multiple industrial clusters in the North.
DEMAND: MAINTAIN STEADY GROWTH DESPITE CONTINUED SUPPLY ADDITIONS
In Q3 2026, the average industrial land occupancy rate reached 65%, +0.6 ppts QoQ but -2.1 ppts YoY. The year-on-year decline was primarily attributable to the substantial volume of new supply brought online across provinces within the Northern Key Economic Zone. As newly completed projects typically require a ramp-up period to attract tenants and fill available land during the initial operating phase, the market-wide average occupancy rate came under downward pressure – a reflection of the supply-side timing effect rather than a material weakening in leasing demand.
Hanoi continued to record full occupancy at 100% in Q3 2026, while Bac Ninh and Hung Yen maintained occupancy above 70%, reflecting relatively strong absorption capacity in industrial markets underpinned by an established tenant base. Phu Tho recorded occupancy above 60%, while Hai Phong stood at approximately 55%. In terms of demand composition, leasing activity during the quarter was concentrated primarily in the machinery manufacturing, automotive, electronic components, and ready-built factory/warehouse segments.
RENT: STABLE GROWTH MAINTAINED
The average asking rent reached 3.6 million VND/sqm/lease term, increasing by 0.1% QoQ and 1.8% YoY. This indicates limited rental growth pressure across the market, as new supply has expanded available space and supported the maintenance of relatively stable rental levels.
MARKET OUTLOOK: SUPPORTED BY INFRASTRUCTURE DEVELOPMENT AND FDI INFLOWS
During 2026–2028, the market is expected to add approximately 8,577 ha of new industrial land from ongoing and planned projects, equivalent to around 34% of the existing supply. The Northern market is expected to maintain a positive medium- to long-term outlook, supported by FDI inflows, expanding transport infrastructure, and the ongoing shift of global supply chains.
In the medium term, Hai Phong and Bac Ninh are expected to remain the two key growth hubs, supported by their infrastructure advantages, logistics connectivity, and well-established industrial ecosystems. However, growth is increasingly expanding into satellite markets such as Hung Yen, Ninh Binh, and Phu Tho, driven by their larger land availability, competitive costs, and improving infrastructure connectivity.
READY-BUILT FACTORY (RBF) (*)
SUPPLY: CONTINUED EXPANSION, CONCENTRATED IN KEY INDUSTRIAL HUBS
As of Q3 2026, total ready-built factory supply in Northern Vietnam reached approximately 6.1 million sqm, increasing by 3.8% QoQ and 19.1% YoY. In the first nine months of the year, nearly 700,000 sqm of new supply was added to the market, indicating that developers are accelerating project delivery to meet increasingly diverse leasing requirements from manufacturing occupiers.
New supply remains concentrated in established industrial hubs with strong manufacturing and logistics fundamentals, particularly Bac Ninh and Hai Phong, while also expanding into Quang Ninh and satellite markets such as Phu Tho. Notably, a significant share of new projects launched during the year has been developed by large-scale developers, highlighting the market’s continued shift towards greater professionalization, higher construction standards, and stronger capabilities to meet tenants’ increasingly stringent technical and ESG requirements
DEMAND: MODERATE DECLINE DUE TO THE IMPACT OF NEW SUPPLY
In Q3 2026, the average occupancy rate in Northern Vietnam stood at approximately 85%, down 0.9 ppts QoQ and 1.5 ppts YoY. The modest decline in average occupancy primarily reflected the impact of new supply entering the market during the quarter rather than a significant weakening in leasing demand.
Market performance continued to vary across localities. Bac Ninh and Hai Phong recorded improvements of 1.3 and 1.7 ppts QoQ, respectively, bringing occupancy rates in the two markets to approximately 81-82%. In contrast, Phu Tho and Quang Ninh faced greater absorption pressure as around 80% of the total new RBF supply added during the quarter was concentrated in these two localities. As a result, occupancy rates declined in the short term, with additional time required for the market to absorb the newly added space.
From a demand perspective, production expansion by high-tech manufacturers, particularly in computers, electronics, and optical products, continues to be a key driver of RBF demand. In addition to traditional considerations such as labor costs and location, investors’ site selection decisions are increasingly influenced by the maturity of the industrial ecosystem, including improved transport infrastructure and regional connectivity, a more diverse supply of quality factory space, and an increasingly favorable investment environment.
RENT: REAMAIN STABLE AMID RISING NEW SUPPLY
In Q3 2026, the average asking rent in Northern Vietnam reached approximately 131.8 thousand VND/sqm/month, recording modest growth both QoQ and YoY (+0.4% QoQ; +2.3% YoY).
OUTLOOK: INFRASTRUCTURE AND MANUFACTURING DEMAND TO SUSTAIN GROWTH
During 2026–2028, Northern Vietnam is expected to add nearly 965,000 sqm of new RBF supply, primarily concentrated in Bac Ninh and Hai Phong.
The relatively rapid expansion of supply may put short-term pressure on occupancy rates, particularly in areas where multiple projects are brought into operation simultaneously. However, this pressure is expected to be temporary, as leasing demand is likely to remain supported by FDI inflows, supply chain diversification, and production expansion in high-tech industries.
READY-BUILT WAREHOUSES (RBW)
SUPPLY: OVER 100,000 SQM OF NEW READY-BUILT WAREHOUSE SUPPLY ENTERED THE MARKET
In Q3 2026, the Northern RBW market continued to expand, bringing total existing net leasable area to approximately 3.7 million sqm, increasing by 2.8% QoQ and 4.0% YoY. New supply during the quarter was primarily concentrated in Hai Phong and Hung Yen, which benefit from well-established industrial and logistics fundamentals. However, the additional space was largely contributed by several relatively large-scale projects rather than reflecting broad-based supply growth across the market.
In terms of market structure, supply remains highly concentrated across three key markets. Bac Ninh continued to account for the largest share at 43.0% of total supply, while Hai Phong increased by 1.7 percentage points to 26.0% and Hung Yen edged down by 0.6 percentage points to 19.2%. Together, these three markets accounted for approximately 88.2% of total Northern RBW supply, indicating that established industrial and logistics hubs remain the primary development locations for the segment.
DEMAND: STABLE, BUT CONTINUING TO SHOW MARKET DIVERGENCE
The average occupancy rate stood at approximately 85% in Q3 2026, down slightly by 0.4 percentage points QoQ but up 7.4 percentage points YoY. The QoQ decline primarily reflected the short-term impact of new supply entering the market rather than a clear weakening in leasing demand. The YoY improvement indicates that RBW demand continues to maintain a relatively positive underlying trend.
In Q3 2026, Ninh Binh, Quang Ninh, and Hung Yen maintained occupancy rates above 90%, while Hanoi continued to record 100%, reflecting limited supply and relatively stable leasing demand. Bac Ninh continued to improve, with occupancy rising by 1.7 percentage points to 80.8%, indicating strengthening absorption in the market with the largest supply base in the region. In contrast, Hai Phong was the only market to record a notable decline in occupancy, falling by 4.4 percentage points to 82.0% as new supply continued to enter the market.
RENT: STABLE
Asking rents in Q3 2026 remained at approximately 129.9 thousand VND/sqm/month, increasing modestly by 0.8% QoQ and 1.3% YoY. The modest rental growth indicates that overall rental levels remained relatively stable amid continued supply additions, while leasing demand remained relatively positive.
MARKET OUTLOOK: BAC NINH AND HAI PHONG – KEY DRIVERS OF FUTURE SUPPLY
Over the medium term through 2028, the RBW market in Northern Vietnam’s key economic regions is expected to continue expanding, with approximately 692,000 sqm of new supply expected to enter the market. More than 90% of this pipeline is concentrated in Bac Ninh and Hai Phong, further reinforcing the two markets’ leading roles in the Northern RBW landscape.
Market growth will be primarily driven by industrial production expansion and FDI inflows, supporting increased demand for warehousing and logistics facilities. In addition, continued development of transport infrastructure, seaports, and logistics networks, together with supply chain relocation and diversification trends and the ongoing shift from traditional to modern warehousing facilities, is expected to support sustained RBW demand across key industrial hubs.
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