Vietnam continues to rise as a key destination for global manufacturing, driven by its strategic location, competitive labor market, and increasingly sophisticated infrastructure. As companies diversify their supply chains strategy, the need for ready-to-operate, high-quality industrial facilities has never been more critical.
From Cushman & Wakefield’s perspective, the market dynamics underscore this demand. The Vietnam Northern Ready-Built Factories (RBF) market reached 5.1 million sqm of leasable space in Q3 2025, up 14% from the pre-merger period. The occupancy rate rose to 87%, driven by strong demand from key sectors such as electronic components, circuit boards, and traditional manufacturing. Nearly 100,000 sqm of new supply came from two major projects: KTG Industrial VSIP Bac Ninh 2 and another in Hung Yen.
KTG Industrial VSIP Bac Ninh 2 is developed on a 14-hectare site using a single-story RBF model, engineered to deliver measurable benefits in productivity, cost control, and employee well-being. Phase 1 includes about 44,000 square meters of leasable space, with seven high-specification factories scheduled for handover by late 2025.
Flexibility is a standout feature. Factory units can be subdivided starting from a flexible footprint of 1,200 square meters, with each including a dedicated office area that integrates administrative and operational functions under one roof. This capability is a rare advantage for high-standard projects in Bac Ninh, allowing businesses to secure exactly the production size required, and avoiding the financial burden of unused or wasted space. It’s suitable for companies of all sizes, from SMEs, startups, Tier 2**, Tier 3*** and large corporations needing pilot or phased production space to begin operations quickly.
High Technical Standards – Designed for Long-Term Efficiency
The factories utilize high-strength pre-engineered steel and insulated cladding for noise dampening and temperature stability. Floors, built to ACI 117-10 standards for high flatness, support up to 2 tons per square meter. This capacity, which accommodates heavy machinery for electronics and semiconductors while minimizing vibration without structural reinforcement, both reduces upfront costs and ensures future adaptability. The 9-meter clear ceiling height allows for maximum vertical storage via high racking systems or the integration of specialized HVAC and cleanroom setups.
The scalable electrical infrastructure supports a wide range of industries, offering capacity from 100 to 200 watts per square meter. Backup power systems are available to support emergency needs and ensure uninterrupted operations. Furthermore, a continuous water supply is provided to the premises as a standard utility provision. In the event of any service disruption, the developer commits to immediate resolution to uphold the standards of a modern industrial park.
Strategic Cost Optimization: Eliminating Initial Capital Expenditure (CAPEX)
The RBF model at KTG Industrial VSIP Bac Ninh 2 is designed to transform the tenant's financial roadmap by aggressively addressing the challenge of high initial investment costs. Choosing this premium RBF is a calculated financial move that shifts significant Capital Expenditure (CAPEX) risk and burden to the developer.
This model fundamentally eliminates many hidden costs and risks associated with traditional build-to-suit developments, including project management fees, construction delays, and quality control issues, guaranteeing a faster time-to-market. By securing exactly the space needed, businesses avoid unnecessary initial capital outlay while benefiting from premium infrastructure from day one. This supports a “Vietnam Plus Zero Emissions” model, allowing manufacturers to launch operations immediately without disruption or incurring construction-related environmental risks.
The project’s commitment to achieving LEED Gold certification is a tangible value proposition for cost efficiency. Tenants are expected to realize substantial operational savings, projected to be between 75,000 USD and 80,000 USD annually in running costs, directly contributing to a lower Total Cost of Occupancy (TCO) and a faster return on investment. Energy-saving features, including LED lighting, advanced insulated roofing, and an integrated Energy Management System (EMS), allow tenants to monitor power usage and carbon emissions in real time, serving both efficiency and sustainability goals. Furthermore, the factories are solar-ready, maximizing long-term energy independence.
Operational Advantage: Logistics, Connectivity, and Administrative Efficiency
Operational success hinges on seamless Logistics and simplified Administrative Procedures. KTG Industrial VSIP Bac Ninh 2 provides a strategic ecosystem that removes common bottlenecks in both areas.
Strategic Connectivity for Global Supply Chains: Strategically positioned in VSIP Bac Ninh 2, the project ensures exceptional global supply chain connectivity. It offers ultra-fast access to Noi Bai International Airport (20 min) for air freight, quick connection (90 min) to the Hai Phong Port system (including deep-water Lach Huyen Port) for global shipping, and efficient transit (120 min) to major Vietnam-China border gates. Furthermore, the location provides vital resilience, being less susceptible to weather events and mitigating climate change impact.
Optimized Factory Logistics: Internal efficiency is guaranteed by the single-story layout, which simplifies material flow. Modern loading docks equipped with dock levelers for 40-foot containers ensure swift truck turnaround times and minimal manual handling. This design actively facilitates the implementation of lean supply chain models, such as Just-In-Time (JIT), helping tenants stay responsive and maintain a competitive edge.
Streamlined Administrative Support (One-Stop-Shop): Beyond infrastructure, the developer provides a professionally managed service ecosystem designed to meet international standards. KTG Industrial offers end-to-end support for all legal and administrative procedures, including business registration, investment licensing, construction permits, customs, tax, and labor compliance. This “one-stop-shop” model helps businesses reduce administrative burdens, shorten deployment timelines, by handling the typical 3−6 month paperwork and licensing process in Vietnam, allowing companies to focus on core operations.
The emphasis on employee well-being is also an operational advantage: Indoor Environmental Quality (IEQ) standards, maximized natural daylight, and multilayered 24/7 security systems contribute to a stable, safe, and productive workforce, lowering operational risk.
Trusted Developer: Proven Track Record and Sustainable Vision
Choosing a developer with a proven track record is essential for long-term investment security. KTG Industrial is a leading Vietnamese industrial real estate developer with a portfolio of nearly one million square meters built for close to 100 clients. Backed by the KTG Group’s 30+ years of manufacturing experience in Vietnam, the company brings deep operational insight and proven delivery capability.
Its joint venture with Boustead Projects (Singapore) adds financial strength and international expertise, ensuring reliable, on-schedule project execution and long-term asset quality.
KTG Industrial’s ESG commitment extends beyond infrastructure. The company has actively initiated several social initiatives, including supporting the SOS Children's Villages and other community activities. Notably, KTG Industrial launched a large-scale reforestation initiative involving the planting of 5,000 trees across 10 hectares of reforested land, launched on World Environment Day. This green initiative reinforces KTG Industrial's commitment to a sustainable business model that balances environmental responsibility with industrial advancement.
"We're striving to build more responsibly and taking our first steps towards meeting our ESG commitments,” said Mr. Dang Trong Duc, CEO of KTG Industrial. ‘Our reforestation campaign is a modest but meaningful effort that reflects our intention to support “One Billion Trees for a Green Vietnam” initiative and its broader vision for net-zero emissions by 2050."
Cushman & Wakefield believes KTG Industrial VSIP Bac Ninh 2 is more than a real estate investment, it’s a strategic infrastructure decision. With Phase 2 and Phase 3 in the pipeline, the developer offers tenants the opportunity to expand operations within the same industrial ecosystem. For companies seeking a ready-built solution that delivers immediate value and supports sustainable growth, this project presents a rare and timely opportunity. It is especially well-suited for businesses looking to establish operations near Tier 1 manufacturers in Bac Ninh, offering both logistical convenience and access to a thriving industrial cluster.
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**Tier 2 suppliers typically manufacture specialized components or subassemblies that are supplied to Tier 1 vendors, who then integrate them into final products for original equipment manufacturers (OEMs).
***Tier 3 suppliers operate further upstream, providing raw materials or basic processed inputs used by Tier 2 manufacturers. Together, these tiers form the foundational layers of the industrial supply chain, supporting production at various levels of complexity and scale.
