Hanoi, 30th Jan 2026 – Cushman & Wakefield published its Q4 2025 Northern Vietnam Industrial MarketBeat Report, highlighting a strong expansion driven by a sharp increase in industrial land, ready-built factory (RBF), and ready-built warehouse (RBW) supply amid continued demand from high-tech and manufacturing sectors. While new supply entered the market at an unprecedented pace following administrative boundary adjustments and accelerated project licensing, absorption remained stable and rents continued to edge upward.
“We are seeing a more selective phase of decision-making from occupiers,” said Thuan Nguyen, Director of Leasing, Cushman & Wakefield Vietnam. “Beyond pricing, investors are prioritizing locations that offer long-term scalability, infrastructure certainty, and regulatory clarity. Provinces with large land banks and improving connectivity are therefore well positioned to benefit as manufacturers plan not only for initial market entry, but for expansion over the next five to ten years. As Northern Vietnam enters a new phase of industrial development, policy alignment and infrastructure readiness are becoming as critical as land availability in shaping a transparent, efficient environment capable of attracting next-generation manufacturing, electronics, and logistics players.”
Industrial Land Market: breakthrough growth
As of the end of Q4 2025, the total accumulated supply of industrial land in the Northern market reached approximately 23,990 ha. The market in the final quarter continued its vibrant growth momentum with the addition of about 640 ha of new industrial land from three strategic projects: Phuc Son IP (125 ha), Que Vo 2 IP – Phase 2 (277.64 ha), and Dong Van V IP in Ninh Binh (237 ha). The continuous implementation of industrial infrastructure projects not only consolidates the leading positions of existing industrial hubs like Bac Ninh with 5,452 ha and Hai Phong with 5,796 ha but also demonstrates a powerful expansion into potential satellite areas such as Ninh Binh and Phu Tho.
Compared to the scale of 16,800 ha recorded in Q4 2024, the total regional supply achieved a breakthrough growth of approximately 42.8% YoY. This sharp increase is largely due to the redefinition of administrative boundaries and the inclusion of new provinces into the study area since the previous quarter, combined with the accelerated pace of new project licensing throughout 2025.
EXISTING INDUSTRIAL LAND SUPPLY, Q4 2025
Source: Cushman & Wakefield
The Northern industrial land market in Q4 2025 recorded a net absorption area of approximately 63 ha. The average regional occupancy rate adjusted to 65.74%. This figure represents a slight decrease from the 67% recorded in the previous quarter and a decline of about 2.26 percentage points compared to the 68% in Q4 2024. The drop in occupancy rate does not reflect weakening demand but is primarily due to the pressure of massive new supply entering the market, meaning actual absorption has yet to keep pace with the expansion of existing land funds.
The primary demand drivers this quarter remained focused on high-tech industries, electronic component manufacturing, and circuit boards, typified by large-scale investment projects in the industrial hub of Bac Ninh. By locality, Hanoi continued to maintain an absolute occupancy rate of 100% due to land scarcity, while Bac Ninh held its appeal with an occupancy rate of 74.1%. Newly added areas following the merger, such as Quang Ninh (49.27%) and Phu Tho (52.87%), currently have average occupancy rates, creating significant room to attract investors seeking large leasable areas at optimized costs.
The average asking rent for industrial land across the Northern region in Q4 2025 recorded slight growth, reaching 135 USD/sqm/lease term. Compared to the 133 USD recorded in the previous quarter, rents increased by approximately 1.5% QoQ. When compared to the same period last year, the market maintained sustainable growth of 3.8% YoY against the 130 USD mark of Q4 2024.
MARKET PERFORMANCE, Q4 2025
Source: Cushman & Wakefield
Note: The average primary industrial park rental rate refers to the asking price directly from industrial park developers, excluding management fees and VAT.
The USD/VND exchange rate in Q4 2025 = 26,500.
During the 2026–2029 period, the market is expected to welcome approximately 5,050 ha of new industrial land from projects currently in the planning stages. This expansion is not only concentrated in traditional industrial hubs but is also spreading strongly to satellite areas, helping to consolidate the North's position as a vital manufacturing and logistics center for the country.
The main growth engine is bolstered by the completion of strategic infrastructure projects such as Gia Binh International Airport and the expansion of the North-South Expressway, which will optimize logistics networks and regional connectivity. Furthermore, the synchronization of administrative policies following provincial mergers will remove legal barriers, creating a transparent investment environment to attract multinational corporations in high-tech and electronic component sectors.
RBF Market: impressive absorption
As of the end of Q4 2025, the total accumulated supply of Ready-Built Factories (RBF) in the Northern market reached 5,286,087 sqm of Net Leasable Area (NLA). Compared to the same period in 2024, the market recorded an impressive growth of 22.42% YoY. Even when compared to the previous quarter, existing supply maintained a growth momentum of 3.66% QoQ, with Hai Phong continuing to lead the market share at nearly 45% of the total region, followed by Bac Ninh at 23%.
A strategic highlight in Q4 2025 was a wave of simultaneous groundbreaking ceremonies across key locations, creating momentum for future supply. Specifically, Ninh Binh province led the scale of new developments with a total area of 92,728 sqm, followed by Bac Ninh province with 84,000 sqm, and Hai Phong city with an additional 35,000 sqm of leasable factory area.
EXISTING RBF SUPPLY, Q4 2025
Source: Cushman & Wakefield
In Q4 2025, the Northern RBF market recorded an impressive net absorption area of approximately 189,747 sqm, a sharp increase of nearly 47.6% compared to the 128,600 sqm in Q4 2024. Thanks to strong demand, the regional occupancy rate reached 86%, marking a significant breakthrough from the 79% recorded in the same period last year, and a slight decrease of 1 percentage point compared to the 87% in the previous quarter. This result confirms that market absorption remains proactive despite the continuous entry of new supply, proving the North's position as a preferred destination in the global manufacturing chain.
The primary demand drivers remained focused on spearhead sectors such as electronic components, high-tech equipment, and precision engineering. By locality, Hanoi continued to maintain an absolute occupancy rate of 100% due to land scarcity, while neighboring areas such as Hung Yen (95%), Ninh Binh (90%), and Hai Phong (87%) continued to record steady appeal. The high occupancy rates in these industrial hubs demonstrate the effective shift of investors from the center to satellite regions, creating a dynamic and seamlessly connected RBF manufacturing belt across the area.
The average rental rate for RBF in the Northern market in Q4 2025 remained steady at 5.0 USD/sqm/month, unchanged from the previous quarter. Compared to the same period in 2024 (4.9 USD), the rent recorded a slight growth of approximately 2.04% YoY.
MARKET PERFORMANCE
Source: Cushman & Wakefield
Note: All rental rates for RBF/RBW are inclusive of service charges (SC) but exclusive of VAT.
The USD/VND exchange rate in Q4 2025 = 26,500.
The 2026–2029 period will witness the continuous addition of new supply, totaling nearly 1,000,000 sqm of leasable area, particularly in 2026 with over 643,000 sqm. The distribution of future supply through 2029 helps the market maintain balance, meeting the timely leasing demand from FDI enterprises in the electronics and high-tech sectors in areas such as Hai Phong, Bac Ninh, and Phu Thọ.
This growth is strongly amplified by the roadmap to complete strategic infrastructure, such as Gia Binh International Airport and the expansion of the North-South Expressway, which will help optimize the regional logistics supply chain. The shift toward green manufacturing (ESG) and high technology will be the main drivers of demand, while the synchronization of administrative procedures following provincial mergers will help remove investment barriers. With a large reserve of land and increasingly high construction standards, the North is consolidating its position as a leading regional hub for electronic components and semiconductors, attracting high-quality FDI inflows in the long term.
RBW Market: occupancy strengthens
As of the end of Q4 2025, the total accumulated supply of Ready-Built Warehouses (RBW) in the Northern market reached approximately 3,575,000 sqm of Net Leasable Area (NLA). The market structure shows a clear concentration in logistics hubs, led by Bac Ninh with a 43.76% market share. Other strategic locations include Hai Phong at 23.67%, Hung Yen at 19.39%, and Hanoi at approximately 6.60%. Satellite areas such as Quang Ninh and Ninh Binh currently contribute 3.73% and 2.85% respectively to the total existing supply, reaffirming the role of the coastal economic corridor in meeting operational storage needs.
The highlight of new supply in Q4 2025 was heavily concentrated in the Hai Phong area with the commencement of high-quality projects, notably CORE5 Vietnam (Phase 2) adding approximately 34,000 sqm and the KCN Vietnam An Phat project contributing an additional 31,000 sqm. The continuous push by major developers to provide modern warehouse supply at seaport gateways not only anticipates the wave of imports and exports but also serves the storage standards of multinational high-tech and e-commerce enterprises.
EXISTING ACCUMULATED RBW SUPPLY, Q4 2025
Source: Cushman & Wakefield
In Q4 2025, the Northern RBW market recorded a net absorption area of 57,770 sqm. The regional occupancy rate made a leap to 83.03%. Compared to the 77% in the previous quarter, the occupancy rate increased by 6.03 percentage points and recorded a strong growth of 18.03 percentage points when compared to the 65% in the same period of 2024. This robust increase reflects the high demand for year-end inventory stockpiling and supply chain optimization.
The primary demand drivers were concentrated in gateway areas and major consumption centers where infrastructure connectivity plays a decisive role. Hanoi recorded an occupancy rate approaching absolute levels at 98.94%, while Hai Phong continued to maintain high operational performance at 94.64% thanks to its advantage of direct connection to the deep-sea port system. Conversely, Bac Ninh—the locality holding the region's largest warehouse scale with over 1.56 million sqm—currently has an occupancy rate of 69.90%. Although this rate is lower than the regional average, with its abundant land fund, Bac Ninh remains the top choice for large-scale logistics firms seeking centralized storage space to serve nearby high-tech industrial parks.
The average asking rent for RBW in Q4 2025 remained steady at 4.9 USD/sqm/month, flat compared to the previous quarter. However, compared to the 4.6 USD/sqm/month in the same period of 2024, the rent recorded a growth of 6.5% YoY.
MARKET PERFORMANCE
Source: Cushman & Wakefield
Note: The rental rate is inclusive of Management Fees and exclusive of VAT.
The USD/VND exchange rate in Q4 2025 = 26,500.
For the 2026–2029 period, the North is expected to welcome 656,000 sqm of Ready-Built Warehouses (RBW). Hung Yen, Ninh Binh, and Hai Phong will be the localities leading the new land supply, while Bac Ninh continues to consolidate its position as a future logistics hub with nearly 400,000 sqm of floor area.
Market resilience is expected from the breakthrough of the Free Trade Zone (FTZ) model associated with modern deep-sea port planning and Gia Binh Airport. The combination of superior transport infrastructure, preferential policies from the FTZ, and the green development trend (ESG) will be the key to attracting global supply chains, helping the North strengthen its position as a strategic link in the world logistics map.
