IP construction urged to meet market demands

The construction of IPs is urged to meet the demand of the market. Photo: Nguyen Kim

Investors and local agencies are rushing to accelerate the progress of the investment project for the construction of infrastructure in Yen Son - Bac Lung Industrial Park – expanded phase to meet the deadline. By October 15, it must complete the land-use conversion and hand over the 35 hectares of land already cleared, as required by regulations. Before November 30, it must complete the land clearance for the remaining 38 ha out of a total of 72 ha already announced for land acquisition.

Along with Bac Ninh city, Phu Tho Party Committee also directed communes, investors, and relevant agencies to coordinate to resolve obstacles for the Trung Ha I and Trung Ha II industrial park (IP) projects.

“At the 136-ha Trung Ha I IP, it needs to urgently complete investment procedures, expedite the implementation of connecting roads, fire prevention and fighting equipment, and finalise land use right certificates for the two newly attracted projects; at the same time, clarify the investment efficiency for the remaining infrastructure items,” said Bui Van Quang, Standing Vice Secretary of Phu Tho Party Committee. “Regarding the 160-ha Trung Ha II IP, we request that the investor ensure the funding for compensation and land clearance; relevant localities and units need to coordinate closely to immediately resolve obstacles related to land and infrastructure investment, striving to start the project in December 2026.”

Haiphong, Bac Ninh and Quang Ninh are also accelerating investment in IP infrastructure to prepare land for new production projects.

VIS Rating, in its Industrial Real Estate Outlook for the second half of 2026 published on September 29, reported that FDI inflows into Vietnam are expected to remain high and continue to be a key driver of IP development.

“The Demand for industrial land also strengthened. After falling 30 per cent in 2025, newly leased industrial land increased 60 per cent on-year to 500 ha in the first half of 2026, driven largely by production expansion among electronics and semiconductor companies,” it said.

VIS Rating recorded that the area of new industrial park land for lease in the first 6 months of the year reached about 500ha, an increase of 60 per cent compared to the same period; the occupancy rate remained at 82 per cent. The need to expand production of electronics and semiconductor enterprises is one of the main drivers.

According to VIS Rating, recent policies to attract foreign direct investment (FDI) have further boosted demand for industrial land. In the first eight months of 2026, registered FDI reached $40.6 billion, up 55 per cent on-year, while disbursed FDI rose 12 per cent to $17.3 billion.

“The sustained growth of FDI inflows is having a profound impact on Vietnam’s industrial real estate sector while reinforcing the country’s role within global supply chains. As foreign-invested enterprises in electronics, optical products, computers, high-tech manufacturing and related industries continue expanding production and supply chain operations in Vietnam, demand for industrial land, ready-built factories and warehouses is rising in tandem,” said Nguyen Phuoc Thuan, director of Industrial and Office Leasing Services at Cushman & Wakefield Vietnam.

“While Vietnam’s competitiveness was once largely associated with labour costs, land availability and geographic location, its appeal today is increasingly driven by an industrial ecosystem capable of meeting the stringent requirements of multinational corporations. Key advantages include a supportive policy framework, continuously improving regional connectivity and a growing pipeline of high-quality industrial real estate,” he said.

Alongside this, amendments to the Law on Investment and the issuance of Decree No.96/2026/ND-CP further enhance the investment environment through greater transparency, efficiency and competitiveness. The introduction of a “special investment procedure” enables projects located in IPs, economic zones and high-tech parks to receive accelerated approvals based on compliance commitments, shortening project implementation timelines.

Supported by favourable policies and infrastructure investment, industrial real estate supply continues to grow. According to Cushman & Wakefield Vietnam’s statistics, as of Q2, Northern Vietnam’s cumulative industrial land bank exceeded 25,200 ha, up 15.7 per cent on-year. More than 1,200 ha of new supply were introduced during the first half of the year through six industrial park developments in Haiphong, Bac Ninh and Ninh Binh.

The region’s ready-built factory stock reached approximately 5.8 million square metres, representing annual growth of 16.9 per cent, while ready-built warehouse supply totalled around 3.6 million sq.m with Bac Ninh, Haiphong and Hung Yen remaining the leading markets, according to the Cushman & Wakefield.

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