Industrial real estate in northern, southern Vietnam cater to different investor needs
While industrial real estate is set to grow throughout the country in the coming years, there are marked differences in how different regions cater to investor needs, industry insiders say.
Savills Vietnam notes that the northern region has a more abundant supply of industrial real estate, thanks to faster site clearance and the conversion of agricultural land.
There has also been a shift in foreign direct investment (FDI) towards industries with higher added value, such as electronics, components, solar energy products, and automobiles.

Vietnam-Singapore Industrial Park (VSIP) II in Binh Duong province, southern Vietnam. Photo courtesy of VSIP J.V Co., Ltd.
In contrast, the southern region faces several challenges including the shortage of construction materials, sluggish approval process and licensing by local governments.
John Campbell, head of industrial services at Savills Vietnam, said leasing activities varied greatly between the two regions.
Specifically, in the north, a majority of land lease contracts involve large-area leases from mainland Chinese and Taiwanese manufacturers for projects related to electronic components and solar energy.
For example, mainland China’s Jinko Solar Holding Co., Ltd. has invested $1.5 billion in a facility on a 76-hectare land lot in Quang Ninh province, while Taiwan-based Fulian Precision Technology has invested $621 million for a 49.6-ha plot of land in Bac Giang province.
In the south, most contracts cover rentals for ready-built factories or smaller areas compared to the north. Major industries attracting investments in the region include food and beverages, rubber, plastics, consumer goods, construction materials and textiles and apparel.
For example, Suntory PepsiCo invested $185 million a 7.5-ha project in the Vietnam-Singapore Industrial Park 3 (VSIP III) in Binh Duong province. Additionally, Denmark’s Pandora Holdings invested $163 million in the ICDICO-Becamex Long An Industrial Park for a 20-ha plant.
New industrial parks
Many industrial park projects have secured investment registration certificates so far this year.
Most recently, Anthi IDICO was licensed to develop the VND3 trillion ($117.8 million) Tho Hoang industrial park covering 250 ha in the northern province of Hung Yen.
In February, Fuji Phuc Long Co.,Ltd was awarded a permit to expand the Vietnam-Korean IP on 174 ha in Bac Giang province at a cost of VND1.2 trillion ($47.15 million).
The same month, the province licensed Le Delta JSC to build the VND1.83 trillion ($72.14 million) Phuc Son IP spanning 124 ha.
In early March, Viglacera Thai Nguyen secured a license to develop the second phase of the Song Cong II industrial park in the northern province of Thai Nguyen, with a total investment of VND4 trillion ($157.16 million). At the same time, Vinaconex got approval to develop the 300-ha Dong Anh IP at a cost of VND6.3 trillion ($247.5 million) in Hanoi.
Also in March, Viglacera Yen My., JSC received approval to invest in the VND1.8 trillion ($70.72 million) Doc Da Trang IP, spanning 280 ha in the central province of Khanh Hoa.
This month, Phuc Long Co. Ltd received a permit to expand the Phuc Long industrial park on 329 ha in the southern province of Long An, with a total capital of VND VND5.64 trillion ($222 million).
In late May, IDICO-ITC was licensed to develop the VND5.9 trillion ($231.82 million) Tan Phuoc 1 industrial park, covering 470 ha in the southern province of Tien Giang.
As of end-2023, Vietnam had 416 IPs spanning 89,200 ha, with 296 of these having an average occupancy of 72%.
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