Industrial Land Rent in North Vietnam Keeps Rising
Industrial land rents in Northern Vietnam hit $139/mĀ² in Q1, driven by strong FDI, manufacturing demand, and high occupancy across key zones.
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Industrial Land Prices Continue to Rise in Northern Vietnam in Q1 2025
The industrial real estate market in Northern Vietnam witnessed continued positive momentum in the first quarter of 2025. According to a recent report by CBRE Vietnam, average industrial land rental prices in the region surged to $139 per square meter for the lease term, marking a nearly 4% year-over-year increase.
This price growth reflects both domestic and foreign investor confidence in Vietnamās manufacturing and logistics infrastructure, especially in Tier-1 markets such as Hanoi, Hai Phong, Bac Ninh, Hung Yen, and Hai Duong. These provinces are home to some of the country’s most strategically located and well-developed industrial zones.
Strong Start to the Year for Northern Vietnamās Industrial Real Estate
CBREās data indicates that Tier-1 industrial markets in Northern Vietnam recorded a 3.7% YoY increase in rental rates, with high occupancy rates pushing landlords to adjust prices upward. Well-leased zones were at the center of this price surge, reflecting solid demand and limited available land.
The industrial land absorption rate reached nearly 80%, accounting for around 200 hectares, showing a slight increase compared to the same period last year. A series of major new projects broke ground in Q1, further demonstrating the regionās growing appeal:
Lite-On Technology launched a $690 million electronic components manufacturing facility in Quang Ninh.
Victory Giant Technology initiated a $540 million investment project in Bac Ninh.
These developments align with Vietnamās broader strategy to attract high-value FDI and reinforce its position in the global supply chain.
Ready-Built Factories and Warehouses Also See Steady Growth
In addition to industrial land, the ready-built factory and warehouse segment also experienced growth. Rental prices rose between 2.3% to 2.6% YoY, reaching $4.7 to $4.9 per square meter per month.
CBRE reported that the occupancy rate for ready-built warehouses remained above 80%, led by robust demand from logistics firms, followed by electronics and sporting goods manufacturers.
The Northern region has become an FDI magnet, thanks to improving infrastructure, a competitive labor market, and government incentives. Logistics players in particular are expanding aggressively to meet e-commerce and manufacturing needs.
Additional Insight from Cushman & Wakefield
Real estate consultancy Cushman & Wakefield corroborated these trends. The firm noted that some key industrial zones in the North saw rental increases of 4ā5%, contributing to a rise in overall average market prices.
The primary demand drivers continue to be:
Electronics component manufacturing
Machinery and equipment production
These sectors are aligned with Vietnam’s strategic push to climb the value chain in industrial output.
FDI and Manufacturing Fuel Land Price Growth
The surge in land and warehouse rental rates is closely linked to the rising foreign direct investment (FDI) inflows and manufacturing activity. According to Nguyen Hoai An, Senior Director of CBRE Hanoi:
āThe industrial production index rose by over 2% year-on-year in Q1, and FDI commitments continue to grow, particularly in manufacturing.ā
Vietnam saw nearly $11 billion in registered FDI in Q1 2025āan increase of more than 34% YoY. Real estate alone attracted close to $2.4 billion, a 46% YoY increase. These figures highlight investor confidence in Vietnam’s long-term economic prospects, particularly in its industrial real estate sector.
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