Northern industrial real estate is demonstrating strong appeal, becoming the focus of attracting foreign direct investment (FDI) thanks to its competitive advantages in terms of cost, infrastructure and the trend of shifting to high-tech industries.
According to Savills, in the first 9 months of 2024, the North led the country with 5,3 billion USD of FDI capital in the manufacturing sector, accounting for 59% of total registered FDI capital. Technology industries such as electronics, electrical equipment and automobiles accounted for nearly half of the total new investment capital, affirming the region's position in the global supply chain.
The North possesses many outstanding advantages: geographical location near major markets in North Asia, direct connection to the Southern China economic corridor, competitive land rental costs (average 132 USD/m², 28% lower than the South) and modern infrastructure system. With 61% of the national highway network, key seaports such as Hai Phong, Lach Huyen and Noi Bai International Airport, this region optimally meets logistics and transportation needs, becoming an ideal destination for domestic and foreign investors.
The presence of large technology corporations such as Samsung, LG, Intel and Foxconn has turned the North into a high-tech manufacturing hub, paving the way for second-tier provinces such as Nam Dinh to rise strongly. Mr. Thomas Rooney, Deputy Director of Industrial Services at Savills Hanoi, commented: “The North is leading the way thanks to abundant land funds, reasonable rental prices and superior transport infrastructure. In particular, provinces such as Nam Dinh and Ninh Binh are emerging as new destinations, attracting capital flows into high-value industries.”
Nam Dinh, with its strategic location south of Hanoi, is taking advantage of low land prices, a high-quality workforce (77,8% trained) and increasingly improved infrastructure to catch the wave of investment. While the province previously attracted mainly the textile and garment industry, now high-tech sectors are gradually dominating, promising to create a breakthrough.
According to the plan until 2050, Nam Dinh aims to develop 42 industrial parks (8.389 ha) and 70 industrial clusters (3.451 ha), closely connected to key traffic axes of the Red River Delta. With competitive costs and sustainable development potential, Nam Dinh is not only an alternative to developed industrial provinces such as Bac Ninh and Hai Phong, but also a strategic destination for businesses that want to optimize advantages and stay ahead of trends.
The stable development of the Northern industrial real estate market, along with the shift of capital flows to high-value industries, is creating a solid foundation for a new growth phase, especially in potential localities such as Nam Dinh.
