The Northern industrial real estate market continues to make a strong impression as industrial park (IP) land rental prices hit a record high in the first quarter of 2025, despite the continuous increase in new supply. The attractiveness of this area to international investors has not shown any signs of cooling down, affirming Vietnam's important role in the global supply chain.
According to the latest report from CBRE Vietnam, the average land rental price in tier 1 industrial parks in the North has reached 139 USD/m²/remaining term, up 3,7% compared to the same period in 2024. This is a remarkable increase in the context of the market welcoming a series of new warehouse projects. The area of industrial park land absorbed in the first quarter of the year reached 200 hectares, with the occupancy rate maintained at a high level of 79,7%, reflecting strong demand from businesses.
Two notable projects in the quarter were Lite-On’s $690 million investment in Quang Ninh, focusing on manufacturing electronic components, and Victory Giant Technology’s $540 million project in Bac Ninh, specializing in printed circuit boards. These deals not only strengthen the North’s position in the high-tech sector but also demonstrate the trend of shifting production to Vietnam.
The ready-built warehouse segment also recorded positive developments. Occupancy rates reached 88,6% for factories and 83,9% for warehouses, despite a sharp increase in new supply. Average rents remained stable at USD 4,9/m²/month for factories (up 2,6% year-on-year) and USD 4,7/m²/month for warehouses (up 2,3%). The electronics, logistics and sports equipment manufacturing sectors led the demand for rental space, reflecting the diversity in the investor structure.
Ms. Nguyen Hoai An, Director of CBRE Vietnam Hanoi Branch, commented: “The combination of increasingly complete transport infrastructure, high-quality FDI attraction policies and administrative reform efforts are creating great momentum for industrial real estate. Key projects such as the North-South Expressway or the Hai Phong-Hanoi-Lao Cai railway will continue to enhance Vietnam’s competitiveness.”
Ms. Nguyen Hoai An emphasized that the increase in land rental prices and high occupancy rates are evidence of the sustainable appeal of the market. With advantages in location, cost and policy, industrial real estate in the North is forecast to maintain strong growth momentum, continuing to be a bright spot in Vietnam's economic picture in 2025.
Source: CafeLand
