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Vietnam Industrial Real Estate Market Report Q4/2023 – Northern Region

Vietnam Industrial Real Estate Market Report Q4/2023 – Northern Region

Vietnam Industrial Real Estate Market Report Q4/2023 – Northern Region

Download The Full Report Here


The Industrial Real Estate Market Report for the fourth quarter of 2023 in the Northern region of Vietnam was conducted by the Research Team of RSL Group, covering four main topics on the general economic and investment situation in Vietnam and globally, an overview of the industrial land market, the market for ready-built factories/warehouses in 2023 and emerging market trends in the future. We invite esteemed readers to follow along:


In the world

Global inflation in general throughout 2023 tended to decrease gradually after a period of countries collectively raising interest rates to curb inflation along with decreasing energy prices. The Federal Reserve’s benchmark interest rate was kept at 5.25% – 5.5% from July 2023. The US dollar was trending downward as the global economic outlook weakened. The global commodity market experienced significant fluctuations due to economic, political and social factors such as the escalating Russia-Ukraine military conflict, instability in the Middle East, weakening demand, and tight monetary policies in many countries…

In Vietnam

Compared to the same period in 2022, the Gross Domestic Product (GDP) of the fourth quarter of 2023 increased by 6.71%, while the full year of 2023 saw a growth of 5.05%. Both the Consumer Price Index (CPI) and the core inflation rate for the whole year of 2023 remained within the government’s control target, with respective increases of 3.25% and 4.16%. In terms of foreign direct investment, the total registered capital reached 36.6 billion USD from 111 countries and territories that have invested in Vietnam. However, the import and export performance fell short of expectations, with the total trade turnover reaching 683 billion USD, a decrease of 6.6% compared to the previous year.


Vietnam Industrial Real Estate Market Report Q4/2023 – Northern Region

(1 lease cycle = 50 years)

In the Northern region, the industrial land market in the fourth quarter of 2023 recorded many new supply sources of about 121 hectares. The average rental price for the full year of 2023 reached 131 USD/m2/lease cycle, an increase of about 25% compared to the same period last year. The absorption area reached the highest level in the past 5 years, with Hai Duong and Hung Yen leading in terms of net absorption rate. Some notable projects of the year include the expansion of Dong Van 1 Industrial Park in Ha Nam, Lien Ha Thai Industrial Park in Thai Binh province, and Viet Nhat Industrial Park in Bac Giang province…

Vietnam Industrial Real Estate Market Report Q4/2023 – Northern Region

From the first quarter of 2024 to 2026, the Northern market is forecasted to have approximately 5,300 hectares of new industrial land supply. At the same time, industrial land prices are expected to increase steadily by 8% – 12% per year.


In 2023, the Northern region recorded the highest level of new supply entering into operation to date with a total of 770,000 m2 of newly built ready-built warehouses/factories. The ready-built warehouse and factory market has been attracting significant foreign investment capital since 2018. By 2016, the rental prices of ready-built warehouses/factories are forecasted to increase slightly by 1% – 4% per year.

Vietnam Industrial Real Estate Market Report Q4/2023 – Northern Region

In 2024, the demand for renting warehouses is expected to increase significantly in two locations, Bac Ninh and Hai Phong. Furthermore, some provinces and cities possess a favorable transportation system, such as Thai Binh with a coastal road connecting Hai Phong to Thanh Hoa, Quang Ninh with a network of large industrial zones along the Hanoi – Hai Phong expressway, or Hung Yen province with a new National Highway 39 route, which will also become attractive destinations to attract domestic and foreign investors.


The trend of “Nearshoring” shifting production closer continues to drive the demand for ready-built factories and warehouses for lease (RBF & RBW).

Multi-functional factory

A multifunctional smart factory is a type of factory that combines multiple functions such as production plant, operational office, auxiliary facilities, and showroom for display. This type of facility provides convenient conditions for business owners to manage and operate the factory, easily introduce products to customers, and clearly demonstrate the production process and location.

For more detailed information about the Industrial Real Estate Market Report 2023, please see more and download here.