In recent years, Northern Vietnam has emerged as a center for attracting industrial real estate investment thanks to its modern infrastructure, attractive incentive policies, and abundant labor resources. Provinces such as Bac Giang, Bac Ninh, and Thai Binh are leading the race to attract FDI capital.
Modern infrastructure and preferential policies
Synchronous transport infrastructure is considered one of the important factors helping industrial real estate in the North to make a breakthrough. The expressway system connecting Bac Giang and Bac Ninh provinces with major domestic and foreign production centers, along with Noi Bai airport and Hai Phong seaport, has created favorable conditions for the transportation of goods.
Bac Ninh, with its strategic location near Noi Bai airport and key highways such as Hanoi - Hai Phong, attracted more than 1 billion USD in FDI in 2023. Most of this capital came from leading corporations such as Samsung, Foxconn and LG, operating in the high-tech sector.
In addition, preferential policies of the government and localities also play an important role. Many support policies, such as tax exemptions, cheap land, and quick administrative procedures, have helped businesses reduce investment costs and maximize profits.
According to Dr. Tran Xuan Luong, lecturer at National Economics University: “Northern industrial zones not only have modern infrastructure but also benefit from attractive investment attraction policies, creating great motivation for international investors.”
Low production costs and quality labor resources
Compared to other regions, the North has a big advantage in production costs. Land and labor costs in Bac Giang, Bac Ninh, and Thai Binh are significantly lower than in the South or major industrial zones in Asia. In 2023, Bac Giang will attract more than 500 million USD from Korean, Japanese, and Chinese investors thanks to its low operating costs and favorable geographical location.
A young, abundant and highly skilled workforce is also an attractive factor. Provinces such as Bac Giang and Thai Binh focus on vocational training to meet the needs of foreign investors. Mr. Nguyen Anh Tuan, CEO of Vietnam Industrial Park Investment Consulting Company, commented: “A young workforce, low labor costs and a systematic vocational training policy are major advantages that make the North an ideal destination for manufacturing businesses.”
Potential for sustainable development
Northern industrial real estate is not only a bright spot in the short term but is also forecast to continue to develop sustainably. Associate Professor, Dr. Dinh Trong Thinh, an economic expert, emphasized that political stability, economic growth, and a continuously improving investment environment are factors that help this segment maintain its growth momentum.
With a solid foundation of infrastructure, policies and labor resources, Northern Vietnam continues to affirm its position as a leading destination for industrial real estate investors on the regional and world map.
