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Vietnam Industrial Real Estate Market Report Q3/2023 – Northern Region

Vietnam Industrial Real Estate Market Report Q3.2023 - Northern Region-RSL Group-1

Download the full report here


Industrial real estate market report for the third quarter of 2023 in the Northern region of Vietnam was conducted by RSL Group Research Team, including 4 main contents about the general economic and investment situation in Vietnam and around the world, an overview of the industrial land market, ready-built factory/warehouse market and new market trends in the future. We invite readers to follow along:


In Vietnam

Gross domestic product (GDP) in the third quarter of 2023 increased by 5.33% over the same period last year, only higher than the growth rate of the same period in 2020 and 2021 in the period 2011 – 2023. Consumer price index Average (CPI) in the third quarter of 2023 increased by 2.89%, the first 9 months of 2023 increased by 3.2% over the same period last year.

Inflation in general was still being controlled according to the Government’s set target with an average increase in the first 9 months of 2023 of 4.49% compared to the same period in 2022. As of September 20, 2023, estimates of foreign investment projects had disbursed more than 15.9 billion USD, an increase of 2.2% over the same period in 2022. The index of industrial production (IIP) in the third quarter of 2023 increased by 4.57%.

In the world

At the end of September, the FED kept interest rates unchanged at the range of 5.25% to 5.50% – the highest level in about 22 years and warned that further increases would negatively impact investor psychology. The USD/VND exchange rate increased rapidly in the third quarter with the central exchange rate exceeding VND 24,000 for the first time in August.

Some reasons leading to this situation included declining aggregate demand, tightening monetary policy, rising world public debt, geopolitical instability…


Vietnam Industrial Real Estate Market Report Q3.2023 - Northern Region-RSL Group-2

(1 Lease cycle = 50 years)

The industrial land area in the Northern region was maintained at a stable level of 14,400 hectares, with the occupancy rate reaching nearly 73% in the third quarter, equivalent to a gross absorption of 120 hectares. The average primary rental price reached 123 USD/m2/rental period. During the fourth quarter of this year to 2026, it was expected that about 5,300 industrial land supplies will enter the market, creating conditions for the Northern region to be ready to receive a wave of investment due to shifting production from China. Outstanding new projects coming into operation this year included Lien Ha Thai Industrial Park (Thai Binh), Dong Van 1 Industrial Park expansion (Ha Nam) …

Vietnam Industrial Real Estate Market Report Q3.2023 - Northern Region-RSL Group-3


Ready-Built Factory Market – RBF

The ready-built factory market in the North continues to have exciting developments such as a high occupancy rate at 71%, average rental price reaching 4.9 USD/m2/month, net absorption reaching about 97,000 m2 over the Total existing supply is 3.3 million m2. The demand for renting factories rental mainly came from the Electronics, Computer, Optics, Machinery & Equipment industries, which are supporting businesses for large manufacturing companies in the industrial park. In the future, by 2026, the Northern region is expected to welcome about 1.1 million m2 of factories with the participation of projects such as CNC Tech factory phase 2-3-4 (Vinh Phuc), BW factory Nam Dinh Vu (Hai Phong), Core 5 Hung Yen project…

Ready-Built Warehouse Market – RBW

Similar to RBF, the ready-built warehouse market still maintained positive signals with the existing supply in the third quarter of 2.1 million m2, average rental price reaching 4.6 USD/m2/month and occupancy rate of 71% full. The demand for warehouse rental mainly came from the Electronics, Food & Beverage Manufacturing, E-commerce industries and 3PL companies providing support services to “Eagle” companies. Regarding the market outlook from the fourth quarter onwards, the North will have more new sources of warehouse supply to meet the investment wave of large manufacturers in Vietnam. Some prominent suppliers include Frasers Industrial Center Yen Phong 2C (Bac Ninh), Mapletree Logistics Park (Thuan Thanh III-B Industrial Park, Bac Ninh), Daiwa House cold storage (Minh Quang Industrial Park, Hung Yen)…

Vietnam Industrial Real Estate Market Report Q3.2023 - Northern Region-RSL Group-4


In the future of the industrial real estate market, there are two trends that are attracting the attention of many investors and infrastructure developers: high-rise factories and eco-industrial parks (green industrial parks).

Multi-Storey Factory

With the positive outlook of the e-commerce industry and the need for fast delivery continuing to increase, the high-rise warehouse and factory model will soon become a trend. The biggest advantage of high-rise warehouses and factories is that they provide solutions to help optimize land funds and increase the business and production performance of enterprises.

Eco-Industrial Park

Eco-industrial Park (EIP) is an industrial park where the businesses inside head toward cleaner production activities, and efficient usage of resources; maintaining the relation and cooperation in production to perform industrial symbiosis. Developing the eco-industrial park model will contribute to helping Vietnam realize sustainable development goals and achieve zero net emissions by 2050.

For more detailed information about the Industrial Real Estate Market Report for the third quarter and the first 9 months of 2023, please see and download here.