Converging potential: Bac Ninh industrial real estate is ready to break out

Bac Ninh is affirming its position as a strategic industrial center of the North thanks to its favorable location, synchronous infrastructure and competitive operating costs. In particular, after merging with Bac Giang, the province has entered a new development phase, opening up many opportunities for the industrial real estate market, from industrial park land to warehouses, ready-built factories, etc.

According to Cushman & Wakefield, Bac Ninh has a great location advantage, being only about 30 km from the center of Hanoi, 100 km from Hai Phong port, and less than an hour to Noi Bai International Airport. Moreover, the synchronous transportation system helps the transportation of domestic and export goods to take place seamlessly, bringing a clear competitive advantage to manufacturing enterprises.

In fact, compared to many international industrial centers, Bac Ninh has many similarities but stands out thanks to reasonable operating costs. For example, Shenzhen (China) develops thanks to modern infrastructure and a complete supply chain but at high costs; Jebel Ali (Dubai) is known for its advantage of direct connection between seaport and airport; Monterrey (Mexico) has convenient access to the North American market; Katowice (Poland) has the ability to connect effectively with European markets. In that context, Bac Ninh has a strategic location, synchronous infrastructure, abundant labor resources and competitive costs, becoming an attractive destination for investors to expand production.

According to the General Statistics Office, Bac Ninh is currently leading the country in attracting FDI with nearly 5.12 billion USD in 2024, mainly from the high-tech and electronics manufacturing sectors. In 2025, the province will also mark a historic milestone when it merges with Bac Giang, forming a new administrative unit with a population of more than 3.6 million people and an area of ​​nearly 4,800 km2. On that basis, Bac Ninh aims to have about 85,000 operating enterprises by 2030, nearly three times the current number, of which at least 2 enterprises participate in the global value chain and 15 private corporations are in the top 500 largest enterprises in Vietnam. This is not only an administrative change, but also opens a new era of development for the key economic region in the North, especially in the field of industrial real estate.

Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, commented: “It is thanks to these advantages that have created a launching pad for Bac Ninh industrial real estate to break through. The market is recording a rapid increase in demand for land, warehouses and factories for rent, opening up a large space for investors and industrial infrastructure developers”.

Cushman & Wakefield's Q2/2025 report shows that the total supply of industrial land for rent in Bac Ninh is about 5,200 hectares, with an occupancy rate of over 70%, with rental prices ranging from 150 - 155 USD/m2/rental cycle. Industrial developers such as Kinh Bac City are currently the investors with the largest land fund with about 1,200 hectares, followed by Viglacera and VSIP with more than 1,000 hectares and 480 hectares, respectively.

In the warehouse and ready-built factory segment, the supply reached 1.57 million m2 and 1.09 million m2, respectively, with an average rental price of 5 - 7 USD/m2/month. This factory system is creating a network effect, helping businesses save operating costs, while easily finding ancillary suppliers and logistics partners.

Mr. Dang Trong Duc, CEO of KTG Industrial, said that Bac Ninh has long been considered the "billion-dollar industrial capital" of Vietnam, a strategic destination for many leading technology corporations. The presence of "big guys" not only brings in billions of USD in FDI capital but also contributes to the formation of an ecosystem of ancillary production, logistics and factory services.

Notably, the demand for renting ready-built factories in Bac Ninh is growing by 15-20% per year, especially from American, European, Korean, Chinese and Japanese enterprises. The model of renting instead of building by yourself helps save up to 70-80% of initial investment costs, becoming the optimal choice in the context of enterprises needing to rapidly expand production.

At the same time, Bac Ninh also focuses on developing supporting industries, aiming to have 800 enterprises in this field, 70% of which apply international management standards. Tax incentives, human resource training and technology transfer are creating a solid foundation for local industrial real estate to continue to grow sustainably.

(According to Cushman & Wakefield, Bac Ninh has a great advantage in terms of location, being only about 30 km from the center of Hanoi, 100 km from Hai Phong port and less than an hour to Noi Bai International Airport. Moreover, the synchronous transportation system helps the transportation of domestic and export goods to take place seamlessly, bringing a clear competitive advantage to manufacturing enterprises.

In fact, compared to many international industrial centers, Bac Ninh has many similarities but stands out thanks to reasonable operating costs. For example, Shenzhen (China) develops thanks to modern infrastructure and a complete supply chain but at high costs; Jebel Ali (Dubai) is known for its advantage of direct connection between seaport and airport; Monterrey (Mexico) has convenient access to the North American market; Katowice (Poland) has the ability to connect effectively with European markets. In that context, Bac Ninh converges a strategic location, synchronous infrastructure, and a labor force Abundant and competitive cost, becoming an attractive destination for investors to expand production.

According to the General Statistics Office, Bac Ninh is currently leading the country in attracting FDI with nearly 5.12 billion USD in 2024, mainly from the high-tech and electronics manufacturing sectors. In 2025, the province will also mark a historic milestone when it merges with Bac Giang, forming a new administrative unit with a population of more than 3.6 million people and an area of ​​nearly 4,800 km2. On that basis, Bac Ninh aims to have about 85,000 operating enterprises by 2030, nearly three times the current number, of which at least 2 enterprises participate in the global value chain and 15 private corporations are in the top 500 largest enterprises in Vietnam. This is not only an administrative change, but also opens a new era of development for the Northern key economic region, especially in the field of industrial real estate. Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, commented: “It is thanks to these advantages that have created a launching pad for Bac Ninh industrial real estate to break through. The market is recording a rapid increase in demand for land, warehouses and factories, opening up a large space for investors and industrial infrastructure developers.”

Cushman & Wakefield's Q2/2025 report shows that the total supply of industrial land for lease in Bac Ninh is about 5,200 hectares, with an occupancy rate of over 70%, with rental prices ranging from 150 - 155 USD/m2/rental cycle. Industrial developers such as Kinh Bac City are currently the investors with the largest land fund with about 1,200 hectares, followed by Viglacera and VSIP with scales of more than 1,000 hectares and 480 hectares, respectively.

In the warehouse and ready-built factory segments, the supply reached 1.57 million m2 and 1.09 million m2, respectively, with an average rental price of 5 - 7 USD/m2/month. This factory system is creating a network effect, helping businesses save operating costs, while easily finding ancillary suppliers and logistics partners.

Mr. Dang Trong Duc, CEO of KTG Industrial, said that Bac Ninh has long been considered the "billion-dollar industrial capital" of Vietnam, a strategic destination for many leading technology corporations. The presence of "big guys" not only brings in billions of USD in FDI capital but also contributes to the formation of an ecosystem of ancillary production, logistics and factory services.

Notably, the demand for renting ready-built factories in Bac Ninh is growing by 15 - 20% per year, especially from American, European, Korean, Chinese and Japanese enterprises. The rental model instead of self-construction helps save up to 70-80% of initial investment costs, becoming the optimal choice in the context of businesses needing to rapidly expand production.

In parallel, Bac Ninh also focuses on developing supporting industries, aiming to have 800 businesses in this field, 70% of which apply international management standards. Tax incentives, human resource training and technology transfer are creating a solid foundation for local industrial real estate to continue to grow sustainably.

(VnEconomy)

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