The Hanoi warehouse and factory rental market is experiencing robust growth, driven by the increasing demand from both domestic and international businesses. This article provides a comprehensive overview of this dynamic market, from an overview of industrial parks and current rental conditions to crucial factors to consider when making your selection. Additionally, KTG Industrial will introduce optimal warehouse and factory rental solutions tailored to your needs.
Overview of Industrial Parks in Hanoi
Hanoi, the economic and industrial heart of Northern Vietnam, spans approximately 3,359 km2 and boasts a population of over 8 million. The capital city benefits from its strategic location along the Red River, 11 major highways, and Noi Bai International Airport, all of which contribute significantly to industrial growth.
As the economic center of Northern Vietnam, Hanoi plays a crucial role in driving industrial development in the region.
In 2023, Hanoi witnessed a 7% GRDP growth and attracted nearly US$3 billion in FDI. In the first quarter of 2023 alone, its industrial parks garnered nearly US$100 million in investment, driving a 90% year-on-year revenue increase. Japan emerged as the largest investor in 2023, accounting for 60% of registered capital, followed by China, South Korea, and Singapore.
Hanoi’s impressive GRDP growth and substantial FDI inflows highlight its economic strength and attractiveness to investors.
Despite facing challenges such as limited land availability and high living costs, Hanoi possesses a significant advantage in its skilled labor force. With 85% of Vietnam’s universities located here, the city provides a steady stream of thousands of graduates each year.
The government actively supports industrial development through policies like Decree 35/2022/ND-CP, which offers incentives in taxation, infrastructure, and administrative procedures. Furthermore, Hanoi plans to build three new industrial parks by 2025 and aims to have 32 parks by 2050, demonstrating its vision for sustainable development.
Hanoi’s long-term plan to expand its industrial park network reflects its commitment to sustainable industrial development.
As of 2024, Hanoi is home to 9 industrial parks, including notable names like Quang Minh, Phu Nghia, and Thang Long, catering to a diverse range of industries, including electronics, auto components, and consumer goods manufacturing.
| No. | Industrial Park | Total planned area (ha) |
| 1 | Quang Minh | 344 |
| 2 | Thang Long | 274 |
| 3 | Nam Thang Long | 261 |
| 4 | Phu Nghia | 170 |
| 5 | Thach That | 150 |
| 6 | Noi Bai | 114 |
| 7 | Sai Dong B | 97 |
| 8 | Phung Xa | 84 |
| 9 | Dai Tu | 40 |
The Hanoi Warehouse and Factory Rental Market Today
The Hanoi warehouse and factory rental market is currently experiencing a dynamic phase of development, particularly against the backdrop of thriving industries like mechanical engineering, textiles, and food processing, all of which are expanding their production scale.
Several factors are contributing to the growth of the warehouse and factory rental services in Hanoi. Firstly, the Vietnamese economy is recovering and growing strongly after the impact of the pandemic. Secondly, Vietnam’s accession to the WTO has opened up significant opportunities for domestic enterprises to access international markets. Lastly, in Hanoi, land is becoming increasingly scarce, making it challenging to find and build warehouses and factories.
The demand for warehouse and factory rentals in Hanoi is on the rise.
While the number of rental units is substantial, the quality of these facilities remains a concern. Issues such as inadequate size, outdated designs, and insufficient amenities pose challenges for businesses in storing and preserving their goods. Security and fire safety are also among the top priorities for businesses when leasing warehouse and factory space.
Key Considerations for Renting Warehouses and Factories in Hanoi
Location
To ensure smooth and efficient operations, warehouses and factories should be strategically located with convenient access to major roads, highways, and ring roads, facilitating easy and fast transportation of goods.
The infrastructure in the area needs to be up to par, including roads, electricity, water, and internet, to meet the operational needs of businesses and the well-being of workers. In addition, high ground level is an important factor to avoid flooding during the rainy season, protecting the goods and assets of the business.
The location of the warehouse or factory plays a crucial role in the transportation, storage, and distribution of goods.
Costs
The cost of renting a warehouse or factory is one of the most important factors to consider when choosing a space for your business. This cost includes many different items, and understanding them will help your business have an overview and make an optimal decision.
Warehouse and factory rental prices in Hanoi tend to be high due to limited land availability. To save costs, businesses can consider neighboring areas such as Bac Ninh. Bac Ninh is a province adjacent to Hanoi, with many industrial parks with developed infrastructure and lower warehouse and factory rental prices than Hanoi, while still ensuring convenient transportation connections with the center of Hanoi and other provinces and cities.
Bac Ninh can be a suitable option for businesses looking to save on warehouse and factory rental costs.
Legal Aspects
To minimize potential risks, businesses should pay attention to the following:
- Lease Agreement: This is the most important legal document, stipulating the rights and obligations of both parties. Businesses need to read the contract carefully, ensuring all terms are clear, transparent, and in line with the agreement between the two parties.
- Deposit Procedures: Usually, there will be a deposit between the two parties, ranging from 1 to 3 months’ rent. Businesses should negotiate to reduce the deposit amount to avoid being tied up with capital.
- Support Policies: Businesses need to learn carefully about the support policies for renting warehouses and factories in Hanoi, such as incentives on taxes, fees, and other policies.
- Additional Costs: Businesses need to clearly identify the costs that may arise during the rental process, such as repair costs, maintenance, and other costs.
The location of the warehouse or factory plays a crucial role in the transportation, storage, and distribution of goods.
KTG Industrial’s Warehouse and Factory Rental Solutions
With experience and prestige in the field of industrial real estate, KTG Industrial always strives to provide optimal solutions for customers. We offer a variety of warehouse solutions, from standard warehouses to specialized warehouses, meeting all the needs of businesses. The quality of our warehouses and factories is always guaranteed to international standards with modern infrastructure and optimal security systems. With professional and dedicated service from consulting, design to operation management, KTG Industrial will help customers feel completely secure in their operations and development.
KTG Industrial takes pride in being a trusted partner of many businesses.
Conclusion
The warehouse and factory rental market in Hanoi is growing strongly, meeting the increasing needs of businesses. However, choosing a suitable warehouse or factory is not easy. This article has provided readers with an overview of this market, from an overview of industrial parks, current warehouse rental conditions, to important considerations when choosing. Hopefully, this information will help businesses make the right and effective decisions.
