Industrial and logistics market in 7 key Northern provinces including: Hanoi, Bac Ninh, Hai Phong, Vinh Phuc, Hung Yen, Hai Duong and Quang Ninh
With strong FDI inflows and mature infrastructure, the northern provinces have always been the focal point for industrial investors. The total accumulated supply of industrial land in the whole market reached 13,600 hectares with a new project recorded as an expanded Phuc Dien Industrial Park (172 ha). Land rent in Q3 2022 has increased by 2% compared to the previous quarter, reaching US$111 /sqm/lease term and the occupancy rate reached over 80%. According to our estimation, future supply will be an additional 17,000 hectares with the region's emerging manufacturing centers in Hai Duong, Hung Yen, Bac Giang and Bac Ninh.
The ready-built factory market saw no significant change in new supply at 2,534,000 sqm, with the absorption rate down 6% YoY at 86%. In contrast, ready-built warehouse supply increased by 9.3% QoQ to 1,818,000 sqm, of which warehouse absorption rate increased 2% QoQ and decreased 15% YoY, at 78%. The average asking price for the factory is US$4.6 /sqm/month and the warehouse is US$4.5 /sqm/month, respectively.
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