Vietnam North’s logistics market is experiencing dynamic growth, with total supply expected to exceed 1.3 million square meters by the end of 2024—an impressive 18% year-on-year increase. This surge reflects the region’s growing importance as a vital link in the global supply chain.
In the latter half of 2024, approximately 131,000 square meters of new logistics space is anticipated to be added in the Bac Ninh and Hung Yen provinces. This expansion will significantly bolster the region’s capacity, supporting the increasing demand for efficient supply chain solutions.
The first half of 2025 is poised for even greater growth, driven by new projects from key investors. This expansion will enhance the market’s competitiveness, offering more options for businesses seeking prime logistics and warehousing space. The demand for modern ready-built warehouses (RBWs) has remained strong, fueled by increased investment in the manufacturing sector and strategies like China Plus One.
Net absorption reached 80,000 square meters in the first half of 2024, highlighting the active demand in provinces such as Bac Ninh, Hung Yen, and Hai Phong. With the addition of 73,000 square meters of new space, the total northern supply reached around 1.2 million square meters by mid-2024. The market is also diversifying, with an increasing presence of ready-built hybrids that function as both warehouses and factories, as well as the anticipated completion of the region’s first high-rise RBW.
Average rent has seen a slight uptick, now at USD 4.6 per square meter per month, primarily due to new project launches. Existing projects have maintained stable rents, while overall capital values continue to show modest improvement.
This growth in Vietnam North’s logistics sector underscores its vital role in the supply chain, offering enhanced capabilities and fostering a more efficient flow of goods to meet global market demands.
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