Northern Industrial Land and Ready-built Factory (RBF) 1Q2022

Industrial land market has new supply

The ground-breaking event of Thuan Thanh I IP, Bac Ninh, brought a positive signal to the market in the first quarter of the new year, adding 160 ha of land for lease and increasing the total industrial land area in the North to over 10,024 ha. The RBF market in 1Q22 did not record any new supply. The total supply in the North remained stable at 2.2 million sqm.

Occupancy rate in the Northern region remains above 80%

1Q22 continued to record the heavy impact of the Covid outbreak on business activities of manufacturing enterprises when the number of infections increased sharply in the northern provinces. However, as businesses and communities flexibly adapted to the new normal, the industrial production in the quarter grew strongly. FDI inflows into industrial zones in the North showed strong growth. Notably, in Bac Ninh, VSIP increased the investment capital by nearly 941 million USD. Goertek Group's manufacturing plant project in Que Vo IP increased the investment capital by roughly USD 306 million. The occupancy rate of industrial parks in the North remained at 80%, up sharply from 75% in the same period last year. The occupancy rate of RBF also continued to be high, reaching 98%.

Land prices and rents remain unchanged

The asking price in 1Q22 reached USD 109 per sqm per lease cycle, slightly decreased compared to the last quarter due to more favourable rents in some IPs in less convenient locations accelerating to fill up vacancies. However, prices maintained a fast growth rate, increasing 9.2% y-o-y. Meanwhile, RBF rent remained unchanged compared to 4Q21, reaching USD 4.7 per sqm per month, up 3.5% y-o-y.