The well-known real estate maxim—“location, location, location”—has never been more relevant than in Vietnam’s industrial property sector. Choosing an optimal site for a factory is not just a preliminary consideration; it is a strategic decision that influences operational efficiency, logistics costs, access to raw materials, market reach, and workforce availability.
In this context, Bac Ninh has emerged as a strategic industrial hub in northern Vietnam, attracting strong interest from both domestic and international investors. The province benefits from a prime geographic position: approximately 30 kilometers from Hanoi’s city center, 100 kilometers from Hai Phong Port, under an hour from Nội Bài International Airport, and situated along the corridor connecting to the upcoming Gia Binh International Airport.
Compared to global industrial hubs, this northern hub offers similar strategic advantages with significantly lower operating costs. Shenzhen, China, is renowned for its advanced infrastructure and integrated supply chains, but comes with high operational expenditure. Jebel Ali, Dubai, provides direct connectivity to both port and airport facilities. Monterrey, Mexico, offers proximity to the North American market, while Katowice, Poland, is well integrated into European supply networks. Bac Ninh combines strategic positioning, robust infrastructure, abundant labor, and cost-efficiency, establishing itself as a highly attractive destination for companies seeking expansion or new investment opportunities.
According to the General Statistics Office, the province led Vietnam in FDI attraction in 2024, with nearly USD 5.12 billion, driven primarily by high-tech and electronics manufacturing. In July 2025, the newly merged province merged with neighboring Bac Giang to form a province of 3.6 million people and nearly 4,800 sq km, a move expected to unlock even greater economic potential. By 2030, Bac Ninh targets 85,000 registered enterprises, including two with global value chain leadership and 15 private groups in Vietnam’s Top 500.
Cushman & Wakefield reports that by Q2 2025, this industrial hub’s total land supply reached approximately 5,200 hectares, with an occupancy rate exceeding 70% and lease rates ranging from USD 150–155 per sqm per lease term. Major industrial developers include Kinh Bắc City (approx. 1,200 ha), Viglacera (over 1,000 ha), and VSIP (480 ha).
INDUSTRIAL LAND SUPPLY IN BAC NINH, Q2 2025 (HA)
Source: Cushman & Wakefield
Meanwhile, the ready-built factory (RBF) and warehouse market has also expanded rapidly, with supply reaching 1.09 million sqm and 1.57 million sqm respectively, with average lease rates between USD 5–7 per sqm per month. This stock has created a strong clustering effect, allowing occupiers to reduce operating costs, collaborate effectively, and access supporting suppliers and logistics partners. Domestic developers currently dominate Bac Ninh’s ready-built factory market, underscoring their deep-rooted presence and long-term commitment.
In 2025, KTG Industrial marked a milestone with a 14-ha project in VSIP Bac Ninh II, located just 10 minutes from Bac Ninh City center and directly connected to National Highway 18, the Hanoi–Bac Ninh Expressway, and Noi Bai International Airport.
"We selected Bac Ninh as our strategic investment location in Vietnam because it is the dynamic industrial heart of the North.” Mr. Dang Trong Duc, CEO of KTG Industrial, said: “With modern infrastructure, efficient connectivity, and a high-quality labor force, Bac Ninh offers an ideal platform for production expansion and supply chain optimization."
READY-BUILT FACTORY SUPPLY IN BẮC NINH, Q2 2025 (SQM)
Source: Cushman & Wakefield
Technology “Queen Bees” and the Ecosystem Effect
The province has long been recognized as Vietnam’s “The Billion-Dollar Manufacturing Hub” and a preferred destination for global technology “Queen Bees.” Samsung, present since 2008, has concentrated nearly 50% of its Vietnam investments in Bac Ninh, including a USD 1.8 billion display and component facility in Yen Phong, contributing to the group’s cumulative USD 23.2 billion investment nationwide by mid-2025. Foxconn, which entered in 2007, has committed approximately USD 3.2 billion, predominantly in Bac Ninh, producing laptops, printed circuit boards, and telecom devices for major brands such as Apple. Goertek, active since 2013, has invested over USD 1.3 billion, equivalent to 20% of its global capital expenditure, establishing Bac Ninh as its strategic manufacturing hub in Southeast Asia.
The presence of these global giants has catalyzed the growth of a robust supporting ecosystem, attracting hundreds of satellite firms and generating substantial demand for ready-built factories, warehouses, and logistics services. The spillover effect has created hundreds of thousands of skilled jobs. Cushman & Wakefield notes annual demand growth of 15–20% for ready-built factories, driven particularly by U.S., European, Korean, Chinese, and Japanese tenants.
Government policy has also been supportive, with incentives designed to strengthen the supporting industries alongside electronics and high-tech food processing. Under Decision 295/QD-UBND, the local administration targets 800 supporting industry enterprises by 2030, 70% of which are expected to adopt international management standards. Incentives include tax relief, workforce training, technology transfer, and Kaizen-based productivity improvement programs.
The ready-built factory model further enhances the province’s attractiveness by reducing upfront capital expenditure. Instead of investing tens of millions of dollars in land and construction, manufacturers can lease facilities on a periodic basis, saving 70–80% in initial costs. This model is particularly advantageous for companies seeking rapid expansion or market testing, as it optimizes cash flow while mitigating financial risks in a volatile market environment.
Mr. Duc adds that the KTG Industrial VSIP Bac Ninh II project is designed to meet the evolving needs of new factory setups. Built to LEED GOLD standards, the project is offering a sustainable platform that helps tenants comply with the increasingly strict green standards set by global manufacturers and brands while strengthening their long-term competitiveness within Northern Vietnam’s high-tech electronics supply chain.
Image of the KTG Industrial VSIP Bac Ninh 2 Project, Source: KTG Industrial
Labor Market Strengths and Challenges
Industrial expansion in the province continues to benefit from a favorable labor market. The province boasts a disciplined, skilled workforce rooted in a long tradition of craft villages, resulting in higher productivity and adaptability compared to many other regions. While Vietnam’s average labor force participation rate is about 68%, Bac Ninh consistently reaches 72–74%, surpassing the Northern regional average of roughly 70%. With more than 60% of the population under 40, the workforce offers a youthful demographic structure well-suited for manufacturing and high-tech industries.
However, rapid FDI inflows from Samsung, Foxconn, and Goertek have intensified competition for talent, particularly in technical and mid-management roles. Labor mobility is high, with frequent job-switching for better wages, increasing recruitment and training costs. Average wages in the region have also been rising quickly, growing 6–10% annually, highlighting a growing imbalance between labor supply and demand. This represents a key challenge for a province positioning itself as Vietnam’s “electronics capital.”
To address these pressures, the local government is promoting structured workforce development through tripartite partnerships among government, businesses, and technical universities. Parallel efforts are underway to build social infrastructure around industrial parks, including worker housing, schools, healthcare, and community amenities, to enhance quality of life and improve retention. Additionally, the province is encouraging enterprises to adopt automation and digital transformation, while upskilling workers to meet future industrial requirements.
Strategic Outlook
Ultimately, Bac Ninh’s strategic location is more than a geographic advantage, it is a gateway to domestic and international markets, a platform to leverage global supply chains, and a connector to international industrial hubs. From multinationals to SMEs, the area is viewed as the ideal location for sustainable expansion. Investors choose this northern hub because it is close enough to remain integrated with China while providing the flexibility to act as a springboard into ASEAN, one of the fastest-growing regions globally. If Vietnam is the “new manufacturing center,” Bac Ninh is the “first foothold” for high-tech supply chains.
Note: Bac Ninh Province in this article refers to the new administrative boundaries following the merger and provincial border adjustments on July 1, 2025.
