Industrial real estate market in northern Vietnam continued to grow in the first half of 2026, supported by new supply, stable leasing demand and strong absorption of industrial land, which reached its highest level since the first quarter of 2024.
According to CBRE Vietnam, the northern ready-built warehouse and factory market welcomed several large-scale projects during the first six months of the year, mainly in Bac Ninh and Hung Yen pr. Total new supply reached approximately 430,000 square meters, with more than three-quarters coming from ready-built factory projects.
However, the continued addition of new supply pushed the average occupancy rate of ready-built factories in the northern Tier-1 market to 82.7% in the second quarter, down 3.6 percentage points from the previous quarter and 4.2 percentage points year-on-year.
The ready-built warehouse segment, meanwhile, recorded more positive developments as new supply remained moderate while leasing demand from logistics companies and manufacturers stayed strong. Its average occupancy rate reached 85.3% in the second quarter, up 5.1 percentage points quarter-on-quarter and 1.1 percentage points year-on-year.
Average rents in the Tier-1 market stood at $4.9 per square meter per month for ready-built warehouses and $5.1 per square meter per month for ready-built factories, representing annual increases of 5.4% and 3%, respectively.
For industrial land, total net absorption in northern Tier-1 provinces and cities exceeded 217 hectares in the first half of 2026, the highest level since the first quarter, 2024, indicating a clear recovery in demand.
Meanwhile, average industrial land rents reached approximately $143 per square metre for the remaining lease term, up 2.9% year-on-year. The occupancy rate also rose to 81.3%, increasing 1.8 percentage points from the previous quarter and 0.6 percentage points from a year earlier.
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