Northern Vietnam is a rapidly developing industrial hub with numerous advantages in terms of location, infrastructure, and workforce. The demand for factory rentals in this area is growing, especially in major industrial zones such as Yen Phong Expansion (Bac Ninh). Let’s explore the benefits of renting factories in Northern Vietnam and highlight some prominent rental factory projects with KTG Industrial.
Overview of Northern Vietnam
Terrain
Northern Vietnam features diverse terrain, divided into three main regions: the Red River Delta, the Midlands and Northern Mountainous Area, and the Northeastern Region. This geographical diversity not only facilitates agriculture, industry, and urbanization but also drives infrastructure development and attracts investment.
The Red River Delta is characterized by flat terrain and fertile soil enriched by alluvial deposits. As the economic and political center of the country, it boasts a well-developed transportation network and abundant labor resources, enabling businesses to easily access both human capital and consumer markets.
The Midlands and Northern Mountainous Area are marked by plateaus, valleys, and large mountain ranges such as the Hoang Lien Son range. This region is rich in natural resources, including minerals, timber, and medicinal herbs, offering opportunities for mining, processing, and manufacturing industries. Additionally, the midland terrain is suitable for developing industrial zones, especially for industries requiring large spaces and lower land rental costs compared to the delta region.
The Northeastern Region is known for its limestone mountains, plateaus, and famous caves. It is home to many scenic attractions, including Ha Long Bay, fostering tourism and service industry growth. Moreover, its proximity to China supports cross-border trade and supply chain development.
With its diverse terrain and strategic location, Northern Vietnam attracts numerous investors in the industrial, logistics, and trade sectors.
Rivers
Northern Vietnam is endowed with a dense network of rivers, notably the Red River and Thai Binh River systems, which play a crucial role in providing water for agriculture, supporting waterway transportation, and facilitating hydropower generation.
The Red River Delta spans 14.8 thousand km², accounting for 4.5% of the country’s total area, making it the second-largest delta in Vietnam after the Mekong Delta. The terrain is relatively flat, with an elevation ranging from 0.4 to 12 meters above sea level, shaped by the alluvial deposits of the Red and Thai Binh Rivers.
Adjacent to the west and northwest is the Midlands and Northern Mountainous Area, covering approximately 102.9 thousand km², or 30.7% of the country’s total area. This region is predominantly characterized by rugged mountainous terrain, stretching from the Chinese border to the western part of Thanh Hoa province. Some plateaus at altitudes of 600 to 700 meters feature natural grasslands, although they are scattered and relatively small in scale.
This geographical advantage allows Northern Vietnam to efficiently supply water for production and business activities, promote waterway transportation, and provide hydropower resources for the entire region.
Northern Vietnam has a dense network of rivers and streams.
Climate
Northern Vietnam has a tropical monsoon climate with two distinct seasons: a hot, humid, and rainy summer (from April to October) and a cold, dry winter with drizzle (from November to March). The average annual temperature is around 25°C, and rainfall ranges from 1,700 to 2,400 mm.
The Red River Delta region experiences a moderate climate, while the northern mountainous areas are influenced by a continental climate, with winter temperatures that can drop below 0°C, leading to frost and occasional snowfall.
Each year, the North is affected by the Northeast and Southeast monsoon winds, along with 6 to 10 storms and tropical depressions. These climatic conditions impact agriculture, making it suitable for growing cold-weather crops during the winter season. However, for industrial development, high humidity, unpredictable storms, and heavy rains can affect transportation, industrial production, and equipment maintenance. Consequently, these challenges lead to increased construction investment, repair costs, and operational expenses for businesses.
Resources
Northern Vietnam possesses a wealth of natural resources that significantly contribute to economic development and environmental sustainability, offering various advantages such as:
- Minerals: Quang Ninh is home to the largest coal reserves in the country, along with deposits of iron ore, copper, and gold in several provinces. These abundant mineral resources support the growth of heavy industries such as metallurgy and coal mining.
- Forests: The region’s diverse forest ecosystems supply timber for construction and furniture manufacturing. Additionally, valuable medicinal herbs provide essential raw materials for the processing and pharmaceutical industries. Forests also yield other products such as resin, essential oils, and plant-based medicines.
- Land: The fertile soil of the Red River Delta is ideal for agricultural activities, supporting rural economic development.
- Water Resources: Numerous rivers and large lakes, including Ba Be Lake and Thac Ba Lake, provide water for domestic use and industrial production. These water bodies also offer hydropower potential and eco-tourism opportunities.
Advantages in Northern industrial Real Estate Market
Northern Vietnam, particularly in provinces such as Bac Ninh, Hai Phong, and Thai Nguyen, attracts substantial FDI due to its strategic location and well-developed infrastructure. The average industrial land rental price in the North is approximately USD 138/m², which is 20% lower than in the South [1].
- Southern Vietnam: Strategic locations like Binh Duong and Ho Chi Minh City have rental prices reaching up to USD 300/m².
- Northern Vietnam: In prime areas such as Bac Ninh, the average rental rate is about USD 180/m².
The transportation infrastructure in the North is continuously expanding, with 10 operational expressways and 4 additional projects underway, ensuring seamless connectivity to Hanoi and the Chinese border. Additionally, competitive labor costs help businesses optimize their operational expenses.
However, the biggest challenge remains the shortage of skilled labor. Investing in workforce training and enhancing logistics infrastructure will be crucial for the North to maintain its appeal to investors.
Between 2024 and 2026, the region is expected to add 5,500 hectares of industrial land, 1 million m² of ready-built factories, and 700,000 m² of ready-built warehouses.
The industrial real estate market in Northern Vietnam continues to show positive prospects, supported by the manufacturing shift from China. In the first five months of 2024, Vietnam attracted USD 11.07 billion in FDI, marking a 2% increase compared to the same period last year. Notably, investors from China, Taiwan, and Hong Kong accounted for 47% of the demand for industrial land rentals.
While Southern Vietnam faces a shortage of new supply, Northern Vietnam is experiencing significant expansion with 597 hectares of leasable area from projects such as Tien Thanh, Nam Dinh Vu – Phase 2.2 (Hai Phong), and a new project in Hung Yen.
Outstanding factory projects for lease in the North
KTG Industrial Yen Phong IIC (Phase 2)
KTG Industrial Yen Phong IIC has been attracting both domestic and international partners.
KTG Industrial Yen Phong IIC (phase 2) is a ready-built factory and warehouse project strategically located in Bac Ninh. Situated adjacent to National Highway 18 and the Hanoi – Thai Nguyen Expressway, the project provides excellent connectivity for tenants, enabling easy access to major corporations such as Samsung and Luxshare.
The project’s prime location facilitates seamless trade and transportation, with convenient distances to key destinations:
- Noi Bai International Airport: 22 km (30 minutes)
- VSIP Bac Ninh: 6 km (10 minutes)
- Hanoi City Center: 40 km (45 minutes)
- Cai Lan Port: 50 km (60 minutes)
- Cat Bi International Airport: 144 km (120 minutes)
- Vietnam – China Border Gate: 120 km (170 minutes)
KTG Industrial Yen Phong IIC offers modern ready-built factory and warehouse spaces ranging from 872 – 46.643 m². The factory has a floor height of 0.3 m, a ceiling height of 8.7 m, and a floor load of 2 tons/m², suitable for many manufacturing and logistics industries.
Additionally, KTG Industrial supports customers by leveraging strong relationships between businesses and the government, ensuring favorable conditions for manufacturing and commercial activities.
KTG Industrial Yen Phong IIC (Phase 1)
KTG Industrial Yen Phong IIC (Phase 1) is connected to major corporations such as Samsung and Luxshare.
KTG Industrial Yen Phong IIC (Phase 1) is strategically located in Yen Phong, Bac Ninh. The project is situated near National Highway 18 and the Hanoi – Thai Nguyen Expressway, ensuring quick connectivity to key areas. With a distance of just 20 km to Noi Bai Airport and 34 km to Hanoi City Center, the factories here offer excellent logistics and trade advantages. Notably, tenants can easily connect with major corporations such as Samsung and Luxshare, expanding opportunities for business collaboration.
The project provides ready-built factories and warehouses with areas ranging from 816 m² to 52.539 m² m², floor height from 0.3 m, floor load 2 tons/m², ensuring suitability for many manufacturing industries. Modern fire protection system, with backup branch for future sprinklers.
KTG Industrial Yen Phong IIC (Phase 1) is strategically located near key transportation hubs:
- Noi Bai Airport: 22 km (30 minutes)
- Hanoi City Center: 40 km (45 minutes)
- Cai Lan Port: 50 km (60 minutes)
- Vietnam – China Border Gate: 120 km (170 minutes)
KTG Industrial Yen Phong II
KTG Industrial Yen Phong II has a convenient transportation location.
KTG Industrial Yen Phong II is located within Yen Phong Industrial Park in Bac Ninh, spanning a total area of 658 ha. It is one of the most modern and well-planned industrial parks in Northern Vietnam, attracting significant FDI of up to 10 billion USD. The industrial park also features an integrated urban area of 51.6 ha, providing housing for tens of thousands of workers and experts, meeting the demand for long-term living and community development.
The project offers factory spaces ranging from 2,556 m² to 6,440 m², floor load 2 tons/m², electrical system 100W/m² and fire sprinkler system.
Strategic Location:
- Noi Bai Airport: 20 km (30 minutes)
- Hanoi: 30 km (45 minutes)
- Hai Phong Port: 107 km (120 minutes)
- Vietnam – China Border Gate: 150 km (170 minutes)
KTG Industrial Yen Phong I
KTG Industrial Yen Phong I has attracted FDI of up to 10 billion USD.
KTG Industrial Yen Phong I is a ready-built factory project located in Yen Phong Industrial Park, Bac Ninh – one of the most modern and developed industrial parks in Northern Vietnam. Spanning a total area of 658 ha and attracting FDI of up to 10 billion USD, Yen Phong has become a prime destination for both domestic and international enterprises.
The project offers a variety of ready-built factory spaces ranging from 2,581 m² to 9,184 m², catering to diverse production needs. The infrastructure is meticulously developed with the following specifications:
- Floor loading capacity: 2 tons/m²
- Floor height: 0.3 – 1.4 m
- Factory height: 6.4 – 9 m
- Stable power supply with a capacity of 250 w/m²
- Reinforced concrete flooring: Dust-resistant and crack-resistant
- Modern fire protection system: Automatic sprinkler system
Strategic Location:
KTG Industrial Yen Phong I is strategically located, facilitating convenient transportation and market access:
- Noi Bai Airport: 20 km (30 minutes)
- Hanoi City Center: 30 km (45 minutes)
- VSIP Bac Ninh: 10 km (10 minutes)
- Cai Lan Port (Quang Ninh): 140 km (135 minutes)
- Hai Phong Port & Cat Bi Airport: 130 km (120 minutes)
- Vietnam – China Border Gate: 150 km (170 minutes)
In addition to its modern factory infrastructure, KTG Industrial Yen Phong I is located near an urban area of 51.6 ha, offering housing for tens of thousands of workers and specialists. This strategic advantage supports businesses in recruiting and retaining skilled labor efficiently.
KTG Industrial – Factory for rent in Northern Vietnam
The KTG Industrial team is experienced and professional in every service.
KTG Industrial is a joint venture between Boustead Projects (Singapore) and Khai Toan Group (Vietnam). The company provides a system of ready-built factories in key industrial zones across Northern Vietnam, including Bac Ninh, Hai Phong, Hung Yen, Thai Nguyen, and Hanoi. With optimal designs, robust structures, and compliance with international standards, KTG Industrial’s factories enable businesses to:
- Save deployment time
- Optimize operating costs
- Easily scale up production
Standard Specifications for Factories:
- Clear height: 7 – 9m
- Floor loading capacity: 2 tons/m²
- Convenient connectivity to seaports, airports, and expressways
Flexible and Modern Warehousing Solutions:
In response to the growing demand for goods storage, KTG Industrial offers a system of ready-built warehouses with flexible spaces and high load capacities, meeting modern logistics standards. Strategic locations of the warehouses help businesses:
- Optimize supply chains
- Minimize transportation costs
- Enhance operational efficiency
Standard Specifications for Warehouses:
- Height: 9m – 10m
- Dock height: 1.2m – 1.3m, suitable for easy container access
- Floor loading capacity: 2 – 3 tons/m²
Built-to-Suit Solutions:
Besides ready-built factories and warehouses, KTG Industrial also provides Built-to-Suit services, allowing businesses to customize designs according to their production needs. From land acquisition, design, construction to operation, KTG Industrial is committed to delivering comprehensive solutions with:
- Cost optimization
- On-time delivery
Conclusion:
Choosing a high-quality factory in a strategic location enables businesses to operate efficiently and grow sustainably. KTG Industrial is committed to providing optimal factory rental solutions with modern infrastructure, professional services, and flexible policies. Contact us today to learn more about our projects in Northern Vietnam and discover how we can support your business growth!
References
[1] Nguyễn Hồng Nhung. Savills: Việt Nam nắm giữ nhiều lợi thế thu hút đầu tư vào BĐS công nghiệp. Nguoiduatin.vn. Published August 27, 2024. Accessed February 9, 2025. https://www.nguoiduatin.vn/savills-viet-nam-nam-giu-nhieu-loi-the-thu-hut-dau-tu-vao-bds-cong-nghiep-204240827171046065.htm
