The first half of 2025 witnessed remarkable growth, affirming its position as a leading investment hotspot with record-breaking FDI flows and impressive market performance.
“Remarkable growth, affirming its position as a leading investment hotspot
in the region”
Northern Industrial Real Estate Market:
The First Half of 2025 Snapshot
The Northern Industrial Real Estate (IRE) market had a vibrant first half of 2025, with positive macroeconomic indicators and market performance painting an optimistic picture. The strong recovery of the macroeconomy and record FDI flows have been the main drivers for this sector’s development.
TOTAL REGISTERED FDI
21.52 billion USD
Up 32.6% YoY
DISBURSED FDI
11.72 billion USD
5-year record high
AVERAGE LAND RENTAL PRICE
139 USD/m²
Up 5% YoY
OCCUPANCY RATE (TIER 1)
80.4%
Up 1.9 percentage points YoY
Rental Price & Occupancy Rate:
Key Market Developments
High demand and limited new supply have driven stable growth in rental prices and occupancy rates, especially in Tier 1 markets.
Industrial Land Rental Price Growth (USD/m2/lease term)
Tier 1 Market Occupancy Rate (Average Occupancy Rate: 80.4%)
Investment Hotspots: The Pull of Major Provinces
Northern provinces are fiercely competing to attract high-quality investment projects, each with distinct advantages in location, infrastructure, and incentive policies.
Vinh Phuc- A Rising Star
With its strategic location and efforts to improve the investment environment, Vinh Phuc is rising strongly, becoming an attractive destination for both domestic and foreign investors.
– Investment attraction H1/2025: 28 new projects (19 FDI and 9 DDI)
– Total investment capital: Nearly 350 million USD.
– Occupancy rate: Maintained at a high level, with many industrial parks reaching 100%.
– Advantages: Proximity to Hanoi, synchronized transportation infrastructure, and proactive business support policies.
Bac Ninh – The Industrial Captial
As one of the oldest and most developed industrial centers in the North, Bac Ninh continues to attract major technology corporations.
– Strength: A complete electronic industry ecosystem.
– Supply: Always one of the provinces with the largest industrial land supply.
– Infrastructure: Convenient transport connections to ports and airports.
Hai Phong- A Gateway to Trade
With the advantage of being the largest deep-water port in the North, Hai Phong is a top choice for businesses in logistics and export manufacturing.
– Competitive advantage: Modern seaport system.
– Attraction: Major projects in the automotive, electronics, and logistics sectors.
– Development: Expansion of coastal economic zones, creating a large land bank.
Hai Duong – A Central Hub
Located at the center of the Hanoi – Hai Phong – Quang Ninh economic triangle, Hai Duong has great potential to become a key satellite industrial center.
– Location: Easy connectivity to major markets and seaports.
– Diverse sectors: Attracting projects in various fields such as mechanical engineering, textiles, and component manufacturing.
– Potential: Ample land bank and more competitive rental prices compared to Tier 1 markets.
Outlook & Future Trends
The market is forecasted to remain vibrant with a shift towards modern, sustainable IP models and expansion into Tier 2 markets.
Provinces like Thai Nguyen, Vinh Phuc, and Bac Giang will become key destinations
thanks to abundant land and competitive rental prices.
The trend is to attract projects with high technology content and high added value,
such as electronics, semiconductors, and renewable energy.
Eco-industrial park and smart industrial park models that integrate green energy
will be the new market standard.
Author & Contact Information
References
DISCLAIMER
This content is the author’s work and does not reflect the views or positions of DCF Vietnam Corporation. Furthermore, this content is not intended to create an appraiser-client relationship, is not an appraisal/valuation, and does not substitute for a professional appraisal/valuation. Real and specific situations or assets should be considered with the advice of a professional appraiser before taking any action related to the topic discussed herein.
