INDUSTRIAL PARK (IP) LAND
SUPPLY: HAI PHONG AND BAC NINH REMAIN THE KEY SUPPLY DRIVERS
As of Q2 2026, Northern Vietnam's cumulative industrial land stock exceeded 25,200 ha, representing increases of 0.4% QoQ and 15.7% YoY. Over 1,200 ha of new supply was introduced during H1 2026 across six industrial parks in Hai Phong, Bac Ninh, and Ninh Binh, reflecting the ongoing expansion of industrial land inventory to accommodate rising manufacturing and FDI demand. Hai Phong accounted for the largest share of cumulative supply (26%), followed by Bac Ninh (21%), while Hung Yen and Ninh Binh each contributed approximately 13%. This highlights the continued dominance of established industrial hubs alongside the growing appeal of emerging satellite markets, driven by greater land availability and competitive cost structures.
DEMAND: OCCUPANCY EASES AMID RAPID SUPPLY EXPANSION
The average occupancy rate of Northern Vietnam's industrial land market reached 64% in Q2 2026, declining by 2.7 ppts YoY. The decline was primarily driven by the substantial volume of new supply entering the market rather than a deterioration in underlying demand fundamentals. Newly launched industrial parks typically require a longer absorption period, resulting in temporary downward pressure on market-wide occupancy. Demand remained resilient across core industrial markets.
Hanoi continued to operate at near-full occupancy, while Bac Ninh and Hung Yen maintained occupancy rates above 70%. Hai Phong and Phu Tho recorded occupancy levels exceeding 60%. Leasing activity remained concentrated in high-value manufacturing sectors, particularly high-tech industries, AI-related production, and electronic components, indicating sustained demand from strategic industrial occupiers.
RENT: STABLE GROWTH MAINTAINED
The average asking rent for industrial land in Q2 2026 reached 137.7 USD/sqm/lease term, remaining broadly stable on a quarterly basis while increasing 2.7% YoY. The annual growth reflects the continued resilience of rental performance across key industrial markets despite the ongoing expansion of supply.
MARKET OUTLOOK: SUPPORTED BY INFRASTRUCTURE DEVELOPMENT AND FDI INFLOWS
Approximately 7,200 ha of additional industrial land is expected to enter the market between 2026 and 2028 from projects currently under development. While occupancy rates may face short-term pressure from new supply additions, market fundamentals remain supported by sustained FDI inflows, infrastructure investment, and ongoing global supply chain diversification. Demand is expected to remain driven by electronics, semiconductors, high-tech manufacturing, and logistics occupiers. Bac Ninh, Hai Phong, and Hung Yen are likely to retain their positions as the region's key industrial growth engines, supported by strong infrastructure networks, logistics connectivity, and established industrial ecosystems. Increasing investor preference for high-quality, ESG-compliant industrial parks is also expected to support absorption levels and underpin long-term market growth.
READY-BUILT FACTORY (RBF) (*)
SUPPLY: HAI PHONG AND BAC NINH CONTINUE TO LEAD NEW SUPPLY
As of Q2 2026, Northern Vietnam's ready-built factory (RBF) market reached a total stock of approximately 5.8 million sqm, (+5.1% QoQ; 16.9% YoY). During H1 2026, the market recorded over 472,000 sqm of newly completed space, with more than 280,000 sqm delivered in Q2 alone. New supply was primarily concentrated in Hai Phong and Bac Ninh, reinforcing their positions as the region's leading industrial hubs and key contributors to Northern Vietnam's industrial expansion. Meanwhile, Hung Yen also welcomed additional stock, highlighting the growing importance of emerging satellite markets in supporting manufacturing expansion and logistics activities.
DEMAND: RBF OCCUPANCY REMAINS STABLE
In Q2 2026, the average occupancy rate of the Northern Vietnam RBF market stood at approximately 86%, remaining broadly stable quarter-on-quarter (-0.1 ppt) while increasing by 4.5 ppts YoY. Occupancy performance across major industrial markets showed divergent trends. Hai Phong recorded a 2-ppt increase compared to the previous quarter, while Bac Ninh saw a 2-ppt decline, bringing occupancy levels in both provinces to around 80%. The moderation was largely attributable to the substantial volume of new supply entering the market, with approximately 97% of newly completed RBF space delivered in Bac Ninh and Hai Phong during the quarter. As a result, short-term occupancy levels are expected to face temporary pressure as the market absorbs the newly launched facilities.
In contrast, Hanoi maintained its position as the strongest-performing market, supported by limited available stock and sustained leasing demand. Satellite markets including Hung Yen, Ninh Binh, and Phu Tho also demonstrated strong operating fundamentals, achieving occupancy rates of above 95%. Their performance continued to benefit from proximity to Hanoi and improving regional transport infrastructure. On the demand side, high-value manufacturing industries remained the primary leasing drivers, particularly occupiers involved in electronics, electronic components, printed circuit boards, and other advanced manufacturing segments.
RENT: STABLE PERFORMANCE AMID NEW SUPPLY INFLUX
The average asking rent for ready-built factories in Northern Vietnam remained stable at 5.0 USD/sqm/month in Q2 2026, recording moderate growth of 0.4% QoQ and 2.3% YoY. Rental growth continued to be underpinned by steady demand from higher value-added manufacturing sectors, while the majority of new developments remained concentrated within established industrial clusters. Despite the influx of new supply, leasing fundamentals remained sufficiently robust to support rental stability across the market.
OUTLOOK: INFRASTRUCTURE AND MANUFACTURING DEMAND TO SUSTAIN GROWTH
Northern Vietnam is projected to receive approximately 965,000 sqm of additional ready-built factory space between 2026 and 2028, with the future supply pipeline expected to remain largely concentrated in Bac Ninh and Hai Phong. While the upcoming wave of supply may exert short-term pressure on occupancy rates, robust demand from export-oriented manufacturing, electronics, and high-value industries is expected to support market absorption. Furthermore, ongoing infrastructure improvements and enhanced regional connectivity are likely to strengthen the investment appeal of Northern Vietnam's industrial market. Consequently, rental rates are expected to remain broadly stable, reflecting a relatively balanced market environment over the medium term.
READY-BUILT WAREHOUSES (RBW)
SUPPLY: NEARLY 40,000 M² OF NEWLY READY-BUILT WAREHOUSES JOINING THE MARKET
In Q2 2026, the market recorded continued expansion, with two new RBW projects entering Hai Phong and Hung Yen market, bringing the total existing accumulated supply in Northern Vietnam to approximately 3.6 million sqm of net leasable area, representing an increase of 1.1% QoQ and 1.0% YoY.
In terms of geographical distribution, the supply structure in Q2 2026 indicates a relatively high concentration of the Northern Vietnam RBW market. Bac Ninh continued to account for the largest share of total supply at 44.2%, while Hai Phong (24.3%) and Hung Yen (19.8%) remained the next two major RBW markets, supported by their respective advantages in seaport and international logistics infrastructure, as well as connectivity to Hanoi and the broader Northern industrial network.
DEMAND: CONTINUED THE UPTREND
In Q2 2026, the average occupancy rate of the RBW segment reached about 85.7%, (+3.8 ppts QoQ; +12.1 ppts YoY), indicating continued growth in demand and a positive pace of absorption of new supply. The key drivers were the expansion of industrial manufacturing activities, particularly in industrial clusters with a high concentration of FDI enterprises, alongside growing logistics demand as supply chains and distribution activities continued to expand.
Hung Yen recorded the highest occupancy rate among submarkets with available supply, reaching 92.4% in Q2 2026, (+3.1 ppts QoQ), while Hai Phong maintained a high occupancy rate of 86.4%. Notably, Bac Ninh recorded the strongest improvement, with occupancy rising by 7.3 ppts QoQ to 79.1%, indicating that the market with the largest supply base in the region continued to attract large-scale logistics operators. Meanwhile, Hanoi maintained a 100% occupancy rate, reflecting limited RBW supply and stable demand
RENT: MAINTAINING STABILITY
Asking rents remained at about 4.9 USD/sqm/month, up slightly by 0.6% QoQ and 1.4% YoY. The modest price increase reflects a relative balance between rental demand and existing supply. At the same time, the fact that rents have not increased sharply even though the occupancy rate has improved shows that the supply at major logistics centers still meets market demand relatively well.
MARKET OUTLOOK: BAC NINH AND HAI PHONG – KEY DRIVERS OF FUTURE SUPPLY
During the 2026–2028 period, the Northern Key Economic Region is expected to add approximately 636,000 sqm of new supply. Bac Ninh and Hai Phong are expected to remain the two leading markets for new supply, supported respectively by their industrial manufacturing ecosystems, particularly in electronics and high-tech industries, and their advantages in seaport infrastructure and international logistics. The market outlook is further supported by strategic infrastructure projects, including the Free Trade Zone (FTZ) model, modern deep-water port systems, and the future development of Gia Binh International Airport. In parallel, the development of green logistics in line with ESG standards is expected to enhance the region's ability to attract global supply chains and strengthen Northern Vietnam's position within international logistics networks.
