In the southern hub, which attracted investment earlier and more quickly than the north after the US lifted it’s devastating post-war blockade, industrial rent is on average US$159 per square meter per rental cycle. The figure is just $112 in the north.

Tan Tao Industrial Park in Ho Chi Minh City’s Binh Tan District takes up an area of nearly 200 hectares.

Rents in Ho Chi Minh City currently stand at $300 per square meter on average, the highest-ever in Vietnam, compared with $235 in Hanoi.

Trang Bui, executive director of Cushman & Wakefield Vietnam, said industrial land rents in the south are higher than in the north because the southern market developed earlier and thus longer.

However, she said that industrial parks in the north have benefited from better planning because they were built later.

According to real estate consultancy CBRE Vietnam, being closer to China and having a more competitive industrial land rent than their peers in the South, industrial parks in the North are now receiving stronger production shifts from foreign manufacturing companies’ China + 1 strategy.

Northern localities with many industrial parks such as Bac Ninh and Hung Yen have seen a sharp increase in rents, some 7% a year.

The industrial land rental market in the North is expected to expand to such provinces as Thai Binh and Quang Ninh in the near future.

The North has more land for future industrial park development, thereby increasing supply and keeping rents more stable and competitive.

Meanwhile, the industrial land supply in the South is still mainly concentrated in provinces neighboring Ho Chi Minh City, or at the Cai Mep and Cat Lai ports.

According to Trang, this makes the southern region more likely to have a shortage of land available for industrial development, which is also a factor pushing up rents.

Both Cushman & Wakefield and CBRE forecast industrial park land rents in Vietnam will increase by 5-10% this year.

Site work and infrastructure of Vietnam Korean industrial park basically completed

(BGO) – The first phase of Vietnam Korean Industrial Park in Viet Yen district (Bac Giang province) totally covers 50 hectares, 49 hectares of which were cleared by the district People’s Committee, reported local competent agency.

Bac Giang enhances collaboration with Bac Ninh to establish hi-tech industrial area

(BGO) – A meeting was held by the Standing Board of the provincial Party Committee (Standing Board) in Bac Giang and Bac Ninh provinces on February 9 to ink the cooperative programme for development in 2023 – 2025 period and the upcoming years.

173,000 labours resume stable work at industrial parks

(BGO) – After the 2023 Lunar New Year holiday, more than 173,000 labours have resumed working at the businesses in the industrial parks of Bac Giang province so far, accounting for 98.8 percent of total number of stable labours ahead of the biggest festival in Vietnam, the Management Board of provincial Industrial Park (MBIP) reported.

Vietnam’s industrial production to rise 6.6% in 2023: S&P Global

Vietnam is predicted to record a rise of 6.6% in industrial production in 2023, according to S&P Global Market Intelligence.

Indian newspaper: Vietnam could be Asia’s next industrial hotspot

Vietnam has increasingly become a burgeoning industrial hub, especially for tech and apparel, wrote an article published by India’s stattimes.com on January 14.

Source: VnExpress