Industrial Warehouse for Lease Vietnam
Northern Vietnam’s industrial warehouse market continued recording stable growth momentum in 2025 as rising demand from electronics manufacturers, logistics operators, and e-commerce businesses supported leasing activity despite a significant increase in new supply. Strong FDI inflows, infrastructure expansion, and manufacturing growth continued reinforcing the region’s position as one of Vietnam’s key industrial and logistics hubs.
Warehouse Rental Prices Continue Rising Across Northern Vietnam
According to CBRE, major industrial markets including Hanoi, Hai Phong, Bac Ninh, and Hung Yen recorded historically high levels of new industrial supply in 2025, with nearly 1.2 million square meters of ready-built warehouse and factory space completed during the year. Despite the substantial addition of supply, warehouse rental rates continued increasing due to resilient tenant demand across multiple industrial sectors.
Average industrial warehouse rental rates in Northern Vietnam reached approximately USD 4.9 per square meter per month, representing a 6.3% year-on-year increase. Meanwhile, ready-built factory rents averaged around USD 5 per square meter, up more than 3% compared to the previous year.
Tenant demand was primarily driven by companies operating in:
- Electronics manufacturing
- Logistics and distribution
- Sports equipment production
Many occupiers continued favoring ready-built industrial facilities due to their operational flexibility and lower upfront capital requirements. Leasing activity also remained active among companies looking to accelerate operational setup while maintaining cost efficiency.
Strong demand supported total net absorption of ready-built industrial assets at approximately 800,000 square meters in 2025, reflecting a 4.3% year-on-year increase. Occupancy rates across Northern Vietnam’s warehouse and factory market remained relatively high, ranging between 75% and 85%. The market also continued benefiting from stable manufacturing expansion and growing logistics requirements across key industrial provinces.
FDI Growth and Infrastructure Development Strengthen Industrial Expansion
Within the industrial land segment, total absorbed land area across major industrial provinces and cities reached nearly 480 hectares in 2025. Average industrial land asking rents climbed to approximately USD 143 per square meter, marking annual growth of around 4%. However, CBRE noted that rental growth remained lower than the stronger 6–11% annual increases recorded during the 2021–2023 period.
Nguyen Hoai An, Senior Director at CBRE Hanoi, stated that rising industrial land and warehouse rents continued being supported by strong foreign direct investment inflows and manufacturing expansion. Vietnam’s industrial production index increased by 9.2% year-on-year in 2025, representing the country’s strongest industrial growth performance since 2019.
At the same time, realized FDI in Vietnam reached approximately USD 27.62 billion, the highest level recorded in the past five years. The real estate sector ranked as the country’s second-largest FDI recipient, attracting around USD 1.93 billion in registered capital. These factors continued reinforcing the competitiveness of Northern Vietnam’s industrial market as transportation infrastructure and industrial connectivity continued improving.
Michael Piro, CEO of Indochina Capital, emphasized that transportation infrastructure remains one of the key growth drivers for Northern Vietnam’s industrial real estate sector. Several major infrastructure projects are currently being accelerated, including:
- Tu Lien Bridge
- Tran Hung Dao Bridge
- Ngoc Hoi Bridge connecting Hanoi with neighboring provinces
- Gia Binh International Airport in Bac Ninh
- Lao Cai – Hanoi – Hai Phong high-speed railway
These projects are expected to significantly strengthen both regional and international connectivity while supporting long-term industrial expansion across Northern Vietnam.
E-Commerce and Future Supply Continue Supporting Warehouse Demand
Administrative reforms and increased approval authority delegated to local governments have also helped shorten project development timelines across Vietnam’s industrial sector. According to Michael Piro, Indochina Kajima successfully developed six Core5 ready-built factory projects within only three years across strategic industrial locations including Quang Ninh, Hung Yen, Hai Phong, and Phu Tho.
At the same time, the rapid expansion of Vietnam’s e-commerce sector continued creating additional demand for logistics and warehouse assets. Savills projected Vietnam’s e-commerce market to reach approximately USD 26–28 billion in 2025, with more than 7,000 new online sellers entering the market.
As competition intensified, many e-commerce platforms increasingly focused on operational efficiency and fulfillment optimization instead of prioritizing pure market share expansion. This trend continued accelerating demand for modern logistics and warehouse solutions capable of supporting faster delivery times and more efficient last-mile distribution operations.
Looking ahead, industrial real estate supply in Northern Vietnam is expected to continue expanding rapidly as multiple projects move into development. Cushman & Wakefield forecast that the region could add approximately 656,000 square meters of ready-built warehouse space between 2026 and 2029, primarily concentrated in Bac Ninh, Hung Yen, Ninh Binh, and Hai Phong.
To maintain Vietnam’s competitiveness in attracting future FDI inflows, Cushman & Wakefield recommended continued investment into transportation infrastructure, industrial power systems, workforce development, and investment incentive policies. As industrial activity and logistics demand continue growing, the industrial warehouse for lease Vietnam market is expected to remain active across Northern Vietnam’s major industrial corridors in the coming years.
Source: Vn Express