Leasing Industrial Properties in Vietnam – Market Overview & Prices in 2023

Leasing Industrial Properties in Vietnam – Market Overview & Prices in 2023

In this post, you can gain an overall understanding of current Vietnam’s industrial real estate market conditions, as well as updated prices of industrial lands, ready-built factories and warehouses in 2023. So that you can better know how to find a suitable industrial property for your business in Vietnam.

1. Overview of Vietnam’s industrial real estate market trend in 2023

Large-scale FDI inflows are looking for development opportunities in Vietnam, leading to an increase in demand for industrial real estate. According to Nikkei Asia, Apple’s supply chains such as BOE, Quanta, Compal, Goertek, Foxconn, which have factories in Bac Ninh, Bac Giang and Vinh Phuc industrial zones, now plan to open and expand factories in the provinces of Bac Ninh, Nam Dinh, Nghe An and Quang Ninh in the near future. Major Korean corporations also have plans to expand their production activities in Vietnam. In addition, multinational companies are looking to diversify their areas of operation or relocate from China, Vietnam will be a strategic destination.

LG opened an R&D center in Vietnam
LG opened an R&D center in Vietnam

In the North, the industrial real estate market is vibrant following a strong wave of new investment in industrial zones. Strong expansion of Chinese manufacturers in different sectors, mainly electronics, also contributed to the industrial land and ready-built factories segment recording good absorption in the North.

In the South, the market demand is very diverse. Companies in the automotive, apparel and packaging industries are among the industry groups actively seeking industrial land, warehouses and ready-built factories in the South.

On the other hand, however, due to the still bleak export performance combined with the difficult global economic situation, prices of some types of industrial real estate in the remaining months of 2023 may be under downward pressure when demand decreases and rental demand also declines. Industrial real estate tenants also tend to be cautious when expanding their business.

2. Industrial land leasing price updated in 2023

In the first half of 2023, the average industrial land leasing price in the Tier 1 market is $127/m2/remain/leasing term in the North, and $187/m2/remain/leasing term in the South. Over the past 4 years, the average rent has increased by 7%/year in the North and 13%/year in the South (Footnote 1).

Industrial Parks (IP)Price/m2/lease cycle
Do Son IP, Hai Phong city$130
Thai Ha IP, Ha Nam province$85
Que Vo IP, Bac Ninh province$100
Yen Phong 2C IP, Bac Ninh province$165
Dong An IP, Binh Duong province$60
VSIP II, Binh Duong province$80
Dau Giay IP, Dong Nai province$160
Vinh Loc 2 IP, Long An province$55 – $70
Huu Thanh IP, Long An province$130

Northern Vietnam is divided into Tier-1 and Tier-2 regions:

  • The Tier-1 markets include: Hanoi, Hai Phong, Hai Duong, Hung Yen, and Bac Ninh.
  • The Tier-2 markets include:: Thai Nguyen, Vinh Phuc, Bac Giang, Quang Ninh, Thai Binh and Ha Nam.

 Southern Vietnam is divided into Tier-1 and Tier-2 regions:

  • Tier 1 markets include: Ho Chi Minh City, Dong Nai, Binh Duong, and Long An.
  • Tier 2 markets include: Binh Thuan, Ba Ria-Vung Tau, Binh Phuoc, and Tay Ninh

Data from the Vietnam Association of Realtors (VARs) shows that by the end of the first quarter of 2023, the occupancy rate of Tier 1 industrial zones across the country continued to increase, reaching over 80%, of which the southern region averaged 85% – leading the country. Binh Duong is the locality with the highest occupancy rate, reaching over 95%.

Vietnam has good competitive advantages in attracting FDI, such as: low labor costs and business electricity prices compared to other countries in the region, a stable currency exchange rate, many FTAs supporting import and export activities, and favorable tax incentives. In addition, the Government is actively disbursing public investment capital, focusing on infrastructure projects for synchronous connectivity between regions (Footnote 2). It is forecasted that industrial land rent will tend to increase due to high demand and a limited supply of new projects in the short term.

VSIP Bac Ninh industrial park
VSIP Bac Ninh industrial park

3. Ready-built factory leasing price updated in 2023

The average rent for ready-built factories is $4.7/m2/month, and remained unchanged on a quarterly basis.

Factories/Workshops atPrice/m2/month
Hoa Phu IP, Bac Giang province$3
Quang Chau IP, Bac Giang province$4.4
Dai Dong IP, Bac Ninh province$2.6
Yen Phong IP, Bac Ninh province$4.9
Dat Cuoc IP, Binh Duong province$2.1
Bau Bang IP, Binh Duong province$2.6
Thai Hoa IP, Long An province$2.9
Trang Bom IP, Dong Nai province$3.5
Nhon Trach IP, Dong Nai province$4.2

Ready-built factories have moved to a larger scale to meet the needs of talented and experienced foreign businesses that choose to start or expand production in Vietnam and want to save time, cost, and move quickly into their operation phase. Due to the increasingly limited industrial land fund, multi-floor and “ready-built” factories are being considered as a solution in the near future for investors to help expand space and increase land-use efficiency. Besides the factors of price and location, the environmentally friendly industrial park model that applies technology in operation management is predicted to be a competitive advantage in attracting investment in the future

4. Warehouse leasing price updated in 2023

The average rental price of a warehouse is 4.5 USD/m2/month. In both the North and the South, the new supply of ready-built warehouse projects is abundant and continuously added.

Ready-built warehouses serve short-term needs, mainly warehousing and logistics activities or serve short-term investment needs in few months to 3 years, so they will be quite sensitive to the economic situation. Due to the impact of global economic fluctuations, the tendency to adjust the scale has appeared in the manufacturers. Investors and tenants have become more cautious in expanding their businesses and launching new projects. Meanwhile, the supply of ready-built warehouses continues to increase, the occupancy rate fell to only 73%. This led to no increase in rent for ready-built warehouses. Project developers tend to be willing to flexibly negotiate terms to support tenants (Footnote 3).

Warehouse for rent

How Nova Law can help you?

If you are looking for leasing an industrial property in Vietnam, Nova Law may help you. Our legal team will assist you with:

  • Review the industrial property leasing contract
  • Advise on tax incentives on location-based
  • Set up the manufacturing company

Nova Law specializes in assisting foreign investors in setting up businesses in Vietnam by offering a wide range of business legal services including Legal Consulting, Company Registration, Licensing, Visas, and more. Contact our experienced team of lawyers if you are ready to start your Vietnamese business today.


(1) https://laodong.vn/bat-dong-san/thieu-nguon-cung-moi-gia-thue-dat-khu-cong-nghiep-co-the-tang-manh-1213894.ldo

(2) https://vcbs.com.vn/api/v1/ttpt-reports/download-with-token?download_token=4d4dbaed-a08a-4f30-b7fe-4f890c34e3a6&locale=vi

(3) https://baodautu.vn/batdongsan/bat-dong-san-cong-nghiep-phia-bac-don-to-hut-nha-dau-tu-lon-d193788.html

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