Despite global economic uncertainties, industrial parks in northern Vietnam continue to expand as both supply and demand remain strong. Many provinces are emerging as attractive destinations for foreign investment, driven by flexible and sustainable development strategies.
Redefining and expanding industrial powerhouses
The market continues to see the increasing supply of industrial parks in the northern region.
In early October, KCN Vietnam Group broke ground on its newest project in An Phat High-Tech Industrial Park, an 8.9-hectare project offering more than 60,000 square meters of high-quality ready-built factories and warehouses. The development marks a major step in the company’s expansion across the northern key economic region. Four other industrial parks also began construction in late August.

According to Cushman & Wakefield’s report on industrial real estate in the northern key economic region, more than 700 hectares of new leasable industrial land were added in the third quarter, with new parks launched in Phu Tho Province, Haiphong City, and Ninh Binh Province.
Following the redefinition of the northern key economic region based on the new administrative boundaries, total accumulated industrial land supply has reached 23,563 hectares, up 37% from before. While average absorption rates are still being reassessed, actual demand remains strong across major industrial centers.
Rents edged down slightly from the previous quarter but were still 4% higher year-on-year. “Leasing demand remains concentrated in high-value industries such as technology, electronic components, and circuit board manufacturing,” the report noted.
In the ready-built factory (RBF) segment, supply continues to rise while occupancy remains high. Hanoi City leads the market with almost full occupancy, reflecting a tight supply and strong demand, followed by Hung Yen Province (93%), Haiphong City (87%), and Bac Ninh Province (86%). Most tenants are from key sectors such as electronics and traditional manufacturing, which favor ready-built solutions to shorten setup time.
For ready-built warehouses (RBW) and hybrid warehouse-factory (RBH) spaces, occupancy reached around 77% in the third quarter, up seven percentage points from the previous quarter. Average rents rose about 2% year-on-year.
Industrial real estate growth remains closely tied to foreign direct investment (FDI). According to the National Statistics Office, FDI disbursement in Vietnam reached an estimated US$18.8 billion in the first nine months of 2025, up 8.5% year-on-year — the highest level in five years. The manufacturing and processing sector accounted for 82.2% of the total.
To attract investors, developers are designing more flexible projects. The KCN An Phat–Haiphong project, for example, includes two-story factories and modular layouts suitable for electronics and high-tech industries.

Rising potential in a new landscape
The mergers have reshaped the northern industrial landscape but have not changed the region’s strategic direction. Growth is now being driven by a combination of new-generation trade shifts, expanding infrastructure, and more open investment policies.
Analysts expect the ready-built warehouse segment to play a key role in supporting the region’s e-commerce and industrial supply chain ecosystems.
Cushman & Wakefield projects that the northern key economic region will add around 800,000 square meters of new RBW supply over the next three years. Most of this will be concentrated in Bac Ninh Province (49%) and Haiphong City (31%), reinforcing their roles as international logistics gateways for production and trade.
Among localities, Haiphong City stands out as the industrial hub of northern Vietnam, leveraging its seaport and logistics advantages to attract new investment.
A recent Savills report noted that industrial tenants increasingly prioritize being “closer to ports for faster market access.” Many companies are revising location strategies to favor areas near deep-water ports and efficient logistics corridors. In northern Vietnam, Haiphong and neighboring provinces are gaining favor over Hanoi City due to improved port infrastructure and faster customs clearance.
“KCN An Phat reflects our commitment to supporting Haiphong in attracting high-quality FDI and building a modern, sustainable industrial ecosystem,” said Hardy Diec, COO of KCN Vietnam Group. “By introducing new factory types — from two-story units to smaller flexible spaces — we aim to optimize efficiency and costs for investors while reinforcing Vietnam’s position as a top destination for high-value manufacturing.”
Following its merger with Haiphong, the former Hai Duong area now plays a more strategic role in connecting Hanoi City with Haiphong Port and the Quang Ninh industrial zone. Modern and well-linked transport infrastructure also facilitates access to nearby industrial areas such as Bac Ninh and Hung Yen provinces.
Haiphong City currently ranks third nationwide in FDI attraction and aims to secure an additional US$3 billion by year-end. As of October 16, the city’s public investment disbursement rate had reached 59.7%, higher than the national average. Authorities are also planning to establish a free trade zone (FTZ) this year. Over the next five years, Haiphong City will prioritize investment in high-tech, clean energy, and green value-chain industries.
One notable trend in Haiphong City’s industrial real estate market is the move toward sustainable, green-oriented development. The Group project in the Deep C Industrial Park – “KCN Deep C – Phase 2” has earned LEED Gold certification from the U.S. Green Building Council (USGBC). The development features premium ready-built warehouses and hybrid facilities totaling more than 80,000 square meters for lease.
The “green transition” has become almost a requirement for industrial parks amid fierce competition for FDI — especially in high-tech sectors aligned with Vietnam’s new growth model focused on green, circular, and innovative development. As developers strengthen their capacity, investors also benefit from reduced operational costs and improved efficiency.