The ready-built factory (RBF) segment continued to demonstrate robust growth. Total leasable floor area in Northern Vietnam reached 5.1 million square meters, up 14% compared to the pre-merger level. During the quarter, the market welcomed nearly 100,000 square meters of new space from two projects in Bac Ninh and Hung Yen.

Despite the increase in supply, occupancy rates surprisingly jumped to 87%, a four-percentage-point rise from Q2, reflecting solid real demand. Notably, Hanoi achieved full occupancy (100%), followed by Hung Yen (93%), Hai Phong (87%), and Bac Ninh (86%). Projects located near expressways, seaports, or residential areas were almost fully leased immediately after completion.

Average rents remained stable at US$5.0 per square meter per month, unchanged from the previous quarter, indicating a balanced supply-demand dynamic. However, compared to the same period in 2024, rents rose 2%, confirming a long-term upward trend.

For the ready-built warehouse (RBW) segment, the expansion of the regional boundary lifted total accumulated supply to 3.4 million square meters, an increase of 7.6% from pre-merger levels. Q3 alone recorded an additional 18,000 square meters of new space in Hung Yen.

Occupancy in this segment surged to 77%, up seven percentage points in just three months. The growth was primarily driven by heightened storage demand ahead of the year-end peak season, as well as stable expansion in electronics components, construction materials, and traditional manufacturing sectors.

Hanoi, Ninh Binh, and Quang Ninh are now nearly fully occupied (97–100%), followed by Hung Yen (≈80%) and Hai Phong (78%). Warehouse rents held firm at US$4.9 per square meter per month, stable in the first half of the year but 2% higher year-on-year.

According to Trang Bui, CEO of Cushman & Wakefield Vietnam, around 6,500 hectares of new industrial land will be added from now until 2028, creating strong development potential for the Northern region. Among these, Ninh Binh is emerging as a “rising star” with two large-scale projects — Dong Van V and Dong Van VI Industrial Parks developed by Western Pacific, offering nearly 500 hectares of leasable land.

Not only industrial land, but the RBF segment will also expand by an additional 900,000 square meters of floor area over the next three years to meet the wave of large-scale manufacturing investment. The shift from warehouse storage to production facilities shows that investors are upgrading their value chains, moving toward high-tech and high–value-added industries.

For the RBW segment, the period 2025–2028 is expected to see 800,000 square meters of new supply, with Bac Ninh accounting for 49% and Hai Phong for 31% — the two strategic logistics gateways of Northern Vietnam.

“The merger of provinces and the expansion of the economic zone have created a double boost: expanding land resources while simplifying administrative procedures, enabling international investors to more easily develop modern distribution centers,” said Trang Bui.

According to Cushman & Wakefield, a series of strategic infrastructure projects are being accelerated — such as upgrading Gia Binh Airport to a 4E international airport, expanding the North–South Expressway, and developing new interregional road networks. These projects will form a logistics backbone connecting industrial zones with international seaports, not only reducing transportation costs but also enhancing the region’s attractiveness to foreign direct investment (FDI), especially in high-tech sectors.

“Northern Vietnam is entering a new phase of strong growth — with larger scale, more comprehensive planning, and greater competitiveness within the region,” affirmed Trang Bui. “From policies and infrastructure to capital inflows, all factors are converging to propel Northern Vietnam’s industrial real estate market into its next growth cycle.”