A new industrial park was launched in the Northern Key Economic Region this quarter, namely the expanded Yen My II Industrial Park in Hung Yen Province, providing about 150 hectares of industrial land for lease to the market. The total supply of industrial land in the North currently exceeds 16,800 hectares, up 0.9% quarter-on-quarter and 15.2% year-on-year. Meanwhile, a new ready-built factory project, Vietnam Deep C Phase 2 Industrial Park, was launched this quarter, adding about 71,500 sqm of space, bringing the total supply of this market to over 4.3 million sqm, up 1.7% quarter-on-quarter and 16.7% year-on-year. The ready-built warehouse market also recorded three new projects in Hai Phong and Hung Yen, adding about 150,000 sqm to the market. The total supply of warehouses in the North reached over 2.9 million sqm, up 5.7% quarter-on-quarter and 33.1% year-on-year.
The Northern Key Economic Region maintained good investment momentum, with a total net absorption area of 83 hectares. Demand mainly came from Hung Yen with a rate of 29% and Hai Duong with 20%. Meanwhile, Bac Ninh and Hai Phong, the two main industrial & logistics hubs of the Northern region, each accounted for 17% of the total demand. The main drivers of industrial land demand this quarter came from sectors such as Electronics, Chemicals, and ready-built factory and warehouse developers. The average asking rent for industrial land across the market was recorded at USD 130/m²/lease term, up 4.8% year-on-year. At the project level, some projects adjusted rents up by about 7-10% due to high demand for industrial land.
The absorption of ready-built factories and warehouses was recorded at 128,600 sqm and 54,400 sqm, respectively, with the average rent in each market reaching USD 4.9/sqm/month. Most developers maintained unchanged rental rates due to competitive market conditions.
Approximately 4,000 hectares of supply are expected to enter the market from 2025 to 2027. However, many industrial parks are showing signs of delay due to land clearance and compensation issues, which may slow down the launch progress of projects to 2025, 2026, and subsequent years. The ready-built factory market is expected to receive about 971,000 sqm of space. Notable projects include BW Industrial, CNC Tech, Indochina Kajima, and Frasers Property. In terms of location, Vinh Phuc Province leads in future supply with a contribution rate of 38%. Regarding warehouse supply, the Northern Key Economic Region will welcome approximately 800,000 sqm to the market over the next three years (2025 – 2027). Bac Ninh and Hai Phong will lead with rates of 52% and 22%, respectively.
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