As Vietnam continues to strengthen its manufacturing capabilities, regional planning and urban governance are undergoing significant changes. Bac Ninh in northern Vietnam and Dong Nai in the south, both important industrial centers, are pursuing development orientations toward becoming centrally governed cities.
This process could create new growth drivers for the industrial real estate market while expanding investment opportunities in higher-value industrial ecosystems.
Why do Bac Ninh and Dong Nai have potential for industrial real estate development?
Manufacturing site selection is increasingly linked to the ability to manage the entire supply chain, from raw material intake and storage to finished goods distribution.
Businesses need facilities suited to their production lines while maintaining convenient connections to suppliers, labor pools and transport hubs.
Against this backdrop, Bac Ninh and Dong Nai are considered to have strong potential for industrial real estate development, supported by established manufacturing bases, strategic connectivity and continued investment in logistics infrastructure.
Bac Ninh benefits from a network of electronics and high-tech companies across northern Vietnam. According to Cong Thuong Newspaper, the province’s industrial production value at current prices reached VND 692,570 billion in Q1/2026, up 15% year-on-year. The province also plans to develop 11 key logistics centers to meet freight transportation demand and support high-tech manufacturing industries [1].
Dong Nai has a diverse industrial base and is strategically connected to manufacturing centers and seaports in southern Vietnam. The development of expressways, interregional transport links and infrastructure serving Long Thanh International Airport provides an additional foundation for strengthening the province’s logistics capabilities. These advantages suit businesses that need to transport components, raw materials and export goods on a large scale.
Beyond their manufacturing and logistics advantages, the development plans for both provinces to become centrally governed cities are also expected to provide further momentum for infrastructure planning and economic spatial development. This could strengthen supply chain connectivity and better accommodate the needs of manufacturing businesses.
Bac Ninh stands out in electronics manufacturing, while Dong Nai benefits from southern industry and logistics
Bac Ninh: A northern hub for electronics and high-tech manufacturing
Transport infrastructure enhances regional connectivity
The transition to a centrally governed city is expected to accelerate the completion of key infrastructure projects, including strategic sections of Ring Road 4 and modern overpass systems.
These projects will help reduce travel times to Hanoi, Noi Bai International Airport, Gia Binh Airport and Hai Phong Port, improving freight mobility and strengthening Bac Ninh’s connections with key transport, economic and logistics hubs across the region.
For the electronics and high-tech sectors, the ability to combine road, air and sea transport enables businesses to move components, raw materials and finished products more efficiently.
Specialized factory requirements for the electronics and semiconductor industries
The growth of electronics manufacturing and activities across the semiconductor supply chain, particularly surface-mount technology (SMT) and semiconductor assembly, testing and packaging (ATP), is placing increasingly stringent demands on industrial infrastructure.
Beyond usable floor area, businesses need to assess power supply capacity, floor loading capacity, clear height, equipment layout flexibility and fire protection systems.
For processes requiring dust, temperature and humidity control, technical solutions must also be evaluated against the requirements of each production process.
Against this backdrop, KTG Industrial VSIP Bac Ninh 2 is a ready-built factory project in northern Vietnam developed with a green building approach and awarded LEED Gold certification.
Located in VSIP Bac Ninh II Industrial Park, Phase 1 offers a total leasable area of up to 43,892 m², providing production space for high-tech industrial businesses.
The project is designed to accommodate the specific needs of the electronics and semiconductor industries through infrastructure supporting cleanroom operations, high floor loading capacity and a stable dual-grid power supply system.
These advantages could help manufacturers shorten the period from facility setup to the start of production to approximately 60–90 days, supporting OEM delivery schedules.
Actual photos of KTG Industrial VSIP Bac Ninh 2 Phase 1
Dong Nai: A key industrial and logistics gateway in southern vietnam
Connectivity to long thanh airport and the seaport network
As an aviation-oriented urban center and a gateway connecting to deep-water seaports in southern Vietnam, Dong Nai holds a strategic position in the Southern Key Economic Region, with development focused on large-scale heavy industry and logistics.
The strategic transformation toward a modern urban and industrial center is being accelerated by the gradual completion of transport links to Long Thanh International Airport and major transport corridors.
Notably, Phuoc Khanh Bridge plays an important role in connecting with the Ben Luc–Long Thanh Expressway, establishing a direct freight corridor to the Cai Mep–Thi Vai deep-water port complex while helping avoid urban traffic congestion.
These connectivity advantages create favorable conditions for Dong Nai to attract manufacturers of automotive components and electric vehicle (EV) powertrains.
For these industries, interregional transport networks are important throughout the supply chain, from transporting components and raw materials for production to coordinating export shipments according to transport schedules.
Production space for supporting industries and automotive components
For businesses manufacturing automotive components, EV powertrains, precision mechanical products and industrial equipment, selecting production space requires consideration of several factors, including production line layout, quality inspection areas, spare parts storage and a stable power supply for manufacturing operations.
Mechanical processing, machining and equipment assembly typically require greater clear height, suitable floor loading capacity and the ability to install lifting and handling systems.
In Dong Nai, several operational industrial real estate projects, including KTG Industrial Nhon Trach 2, Nhon Trach 3A and Tam Phuoc B, have been developed to meet the needs of high-value manufacturing industries.
KTG Industrial Nhon Trach 2 Phase 4 ready-built factory project
These projects feature factories with high clear heights and steel frame structures that support overhead crane installation. The roof infrastructure is also designed to accommodate solar power systems.
These features give businesses greater flexibility in organizing and expanding production operations while supporting compliance with environmental, social and governance (ESG) standards, which are receiving increasing attention from multinational corporations across global supply chains.
Conclusion
The development of these two industrial centers reflects the growing capabilities of Vietnam’s industrial sector.
Alongside infrastructure upgrades and urban development, flexible industrial real estate solutions, ranging from industrial land for long-term expansion plans to ready-built factories (RBF) that enable businesses to bring production facilities into operation sooner, are creating more favorable conditions for foreign manufacturers to expand their operations in Vietnam and Southeast Asia.
With a portfolio of ready-built factories and ready-built warehouses across key industrial parks, KTG Industrial provides flexible space solutions that help businesses shorten implementation timelines and proactively plan the expansion of their manufacturing and business operations in Vietnam.
References
[1] Bao Cong Thuong. (2026). Bac Ninh huong den trung tam dieu phoi chuoi cung ung toan cau.
https://congthuong.vn/bac-ninh-huong-den-trung-tam-dieu-phoi-chuoi-cung-ung-toan-cau-452182.html
