A well-located property is not only an initial consideration, but also determines operational efficiency, logistics costs, access to raw materials, consumer markets and human resources. A factory located in an optimal location helps a business operate efficiently, while choosing an unsuitable location can lead to high costs, difficulties in recruitment and limited future expansion possibilities.
In the picture of industrial development, Bac Ninh is emerging as a strategic bright spot in the North, strongly attracting domestic and foreign investors. The province has a special advantage in terms of geographical location: 30 km from Hanoi, 100 km from Hai Phong port, less than an hour to Noi Bai international airport and located on the route connecting to Gia Binh international airport which is about to be exploited. The vital traffic system helps transport goods seamlessly, creating a prominent competitive advantage for manufacturing enterprises.
Compared to international industrial centers, Bac Ninh possesses many similar advantages but lower operating costs. If Shenzhen (China) stands out thanks to its modern infrastructure, Jebel Ali (Dubai) with its seaport-airport advantage, Monterrey (Mexico) with convenient access to North America, or Katowice (Poland) with its connection to Europe, Bac Ninh combines synchronous infrastructure, abundant human resources and reasonable costs, becoming an ideal destination for production expansion and new investment.
According to the General Statistics Office, in 2024, Bac Ninh will lead the country in attracting FDI capital with nearly 5,12 billion USD, mainly in high technology and electronics. Entering 2025, an important milestone will be when Bac Ninh merges with Bac Giang, forming a new Bac Ninh province with a population of more than 3,6 million people and an area of nearly 4.800 km².
By 2030, the province expects to have 85.000 operating enterprises, nearly triple the current number; at least 2 enterprises participating in the global value chain and 15 private corporations in the top 500 of Vietnam. This is not only an administrative change but also opens a new era of development for the key economic region in the North, especially the industrial real estate market.
Industrial real estate market is bustling
Cushman & Wakefield's Q2/2025 report said that the total supply of industrial land for lease in Bac Ninh reached 5.200 hectares, with an occupancy rate of over 70% and a rental price of 150 - 155 USD/m²/cycle. Of which, Kinh Bac City is the investor with the largest land fund (1.200 hectares), followed by Viglacera (over 1.000 hectares) and VSIP (480 hectares).
The warehouse and ready-built factory market also recorded abundant supply with 1,57 million m² of warehouse and 1,09 million m² of factory, with an average rental price of 5-7 USD/m²/month. This network helps businesses reduce operating costs, easily cooperate, and find supporting and logistics partners.
Mr. Dang Trong Duc, CEO of KTG Industrial - a domestic enterprise with a 14-hectare project at VSIP Bac Ninh II, only 10 minutes from the center of Bac Ninh City, directly connected to National Highway 18 and Hanoi - Bac Ninh Expressway, shared: "Bac Ninh is the industrial heart of the North. With modern infrastructure, connected traffic and quality human resources, this is an ideal place to expand production and optimize the supply chain".
The attraction of large technology corporations
Bac Ninh is known as the “billion-dollar industrial capital” thanks to the presence of many leading technology corporations. Samsung has been present since 2008, with 1,8 billion USD invested in the screen and component factory in Yen Phong, contributing to the total capital of 23,2 billion USD in Vietnam. Foxconn has invested about 3,2 billion USD since 2007, producing laptops, circuit boards and telecommunications equipment for Apple. Goertek, which joined in 2013, has poured in more than 1,3 billion USD, accounting for 20% of the company’s total global capital.
Not only bringing in FDI capital, these “big guys” also bring along an ecosystem of satellite businesses, forming a vibrant supporting supply chain. The demand for ready-built factories in Bac Ninh increases by 15-20% each year, especially from the US, Europe, Korea, China and Japan.
The model of renting ready-built factories is becoming a strategic choice, helping businesses save 70-80% of initial investment costs, optimize cash flow and reduce risks in a volatile market context.
The KTG Industrial VSIP Bac Ninh II project is built according to LEED GOLD standards, meeting the strict green standards of global brands. This is not only an inevitable trend but also a long-term competitive advantage in the high-tech supply chain in the North.
The influx of FDI capital has led to a demand for highly skilled labor, especially in technical and mid-level management positions. However, the phenomenon of “job hopping” to find higher salaries is widespread, causing recruitment and training costs to increase rapidly. The average salary in Bac Ninh also increases by 6-10% per year, reflecting the tension between supply and demand of human resources.
To solve the problem, the province has implemented a three-way cooperation model between the government, enterprises, and vocational schools, linking training with production practices. At the same time, Bac Ninh focuses on building social infrastructure around industrial parks such as worker housing, schools, hospitals, and community facilities to improve the quality of life and retain workers. Enterprises also promote automation, digital transformation, and training new skills for employees.
It can be seen that Bac Ninh's strategic location advantage not only has geographical significance but also opens up opportunities to access the global supply chain. From multinational corporations to small and medium enterprises, all consider Bac Ninh an ideal destination for sustainable development.
If Vietnam is considered the world's "new manufacturing center", Bac Ninh is the "first springboard" on the high-tech industrial map, contributing to affirming the country's position in the global value chain.
Source: Financial and Monetary Market Newspaper
