Land Size

3360 km²


9.44 million


2511 km²

Labor Force

4.01 million

Unemployment Rate

2.22 %

Overall Outlook in Hanoi

In recent years, Hanoi has experienced a notable transformation in its industrial real estate sector, reflecting the city’s economic growth and increased foreign direct investment (FDI). The demand for industrial spaces in and around Hanoi has surged, driven by factors such as the city’s strategic location, improving infrastructure, and a favorable business environment.

One prominent trend is the development of industrial parks and zones, providing purpose-built facilities for manufacturing, logistics, and other industrial activities. These areas often attract both domestic and international businesses seeking to establish or expand their operations. The government’s initiatives to streamline administrative procedures and create a more business-friendly environment have further fueled the growth of the industrial real estate sector.

Hanoi’s proximity to key transportation hubs, including highways, railways, and an international airport, enhances its appeal as a logistics and distribution center. This strategic location is particularly advantageous for companies engaged in cross-border trade. Additionally, the city’s position within the broader economic development plans of Vietnam has led to increased attention from investors looking to capitalize on the country’s industrialization and economic expansion.

Investors in Hanoi’s industrial real estate market are increasingly diversifying their portfolios to include eco-industrial parks and sustainable developments. This reflects a global trend towards environmentally conscious practices, with businesses seeking spaces that align with green and sustainable principles. As a result, developers are incorporating eco-friendly features into their projects, aiming to attract environmentally conscious tenants.

In conclusion, Hanoi’s industrial real estate sector is undergoing dynamic changes driven by economic growth, FDI, and a focus on sustainability. The city’s strategic location, improved infrastructure, and supportive government policies position it as a key player in Vietnam’s industrial landscape. However, due diligence is essential to stay abreast of the latest developments and opportunities in this rapidly evolving market. For the most current and specific information, it is recommended to consult recent reports and industry analyses.

Hanoi Population (Historical)
Unit: %
Hanoi Population Growth Rate (Historical)
Unit: million people


Being the capital Vietnam, Hanoi is probably the most mature region when it comes to infrastructure. However, it does not mean it’s stop progressing. In a recent consultation workshop, the minister of Minister of Planning and Investment Nguyen Chi Dung stressed the importance of continuing investment on the city infrastructure on the capital’s planning for 2021-2030, with a vision for 2050.


  • Sumitomo Corporation and BRG Group have joined forces in a 50-50 partnership to create a $4.2 billion smart city in Hanoi. Spanning a 2.72 square kilometer area in the northern district of Dong Anh, the five-phase project aims to transform the region. The initial phase will focus on establishing a residential area capable of accommodating up to 25,000 residents. Subsequent phases will introduce office buildings, commercial facilities, and culminate in the development of key structures such as a mall and a 108-story financial center, scheduled for completion between 2030 and 2032. In total, the project will encompass 7,000 residential units, along with hospitals, schools, disaster prevention facilities, security systems, and additional commercial spaces. Construction commenced at the end of 2023, with the entire project slated for completion in 2032.
  • The largest project in the railway pipeline is the Hanoi- Ho Chi Minh City High Speed Rail Project. According to initial estimates, the 1,560km route is valued at USD58.7bn, more than three times the next costliest infrastructure project, the USD16bn Long Thanh International Airport Project in Dong Nai province, next to Ho Chi Minh City. The high-speed rail project is spilt into two phases. Phase I is the 360km Ho Chi Minh to Nha Trang southern segment and the 280km Hanoi to Vinh northern segment; these segments are targeted for completion by 2030. Phase II will link the northern and southern segments and is planned for completion around 2045. We expect the above project to benefit the development of smaller cities along the route, such as Thanh Hoa and Vinh along the northern segment and Phan Thiet and Nha Trang along the southern segment. Although these cities are currently served by airports and roads, a rail link via the high-speed rail will reduce commute time to the larger cities of Hanoi and Ho Chi Minh City.
  • Another bridge planned in Hanoi, the new USD109mn Duong bridge will connect Hanoi and Bach Ninh. Construction of the public-private partnership (PPP) project started in January 2022 and will be completed in 2026. Ho Chi Minh City will host the 3.4km new Can Gio Bridge. Construction is likely to be completed in late 2025 or early 2026. The four-lane cable-stayed bridge will cost USD227mn.
  • Hanoi is currently building two metro lines, Lines 2 and 3, and has another four planned. The USD890mn Line 2, which will run 11.5km between Nam Thang Long and Tran Hung Dao, is being built by a consortium led by South Korea’s Daelim. Line 3, which will run 12.5km from Nhon to Hanoi Railway Station, is under construction and its expected opening date has been pushed back from 2020 to 2023 due to financing difficulties and issues with land clearance. The project is financed by the World Bank, the ADB and the European Investment Bank (EIB) and is being constructed by Daelim Industrial Company and Systra.


In the first six months of 2023, despite a 4.3% decrease in total foreign investment capital into Vietnam, Hanoi emerged as a leading city in attracting foreign investment, with a total of $2.265 billion USD in FDI. This includes 196 new projects with $75.6 million USD, 88 projects receiving additional investment totaling $208.7 million USD, and 173 instances of capital contribution and share purchases by foreign investors amounting to $1.981 billion USD. Notably, a significant transaction by Japanese investor Sumitomo involved buying shares of VPBank on the stock exchange for $1.5 billion USD. Hanoi’s attractiveness to FDI is attributed to its competitive socio-economic environment, high-quality human resources, effective administrative reforms, and supportive policies for businesses. Despite facing challenges such as unsynchronized technical infrastructure and complex administrative procedures, the city has implemented specific solutions to enhance FDI attraction, including speeding up planning works, establishing more industrial zones, and improving infrastructure to foster investment and business expansion, particularly in high-tech fields.

  1. Samsung Electronics: Over $670 million invested in its Hanoi-based research and development center, announced in 2020.
  2. LG Electronics: Invested approximately $1.5 billion in its Hanoi production facility over several phases since 2015.
  3. Canon: Has invested over $100 million in printer and imaging equipment manufacturing facilities in Hanoi since the early 2000s.
  4. Foxconn (Hon Hai Precision Industry Co., Ltd.): Announced a $270 million investment in 2021 to expand its production in Hanoi.
  5. Sumitomo Corporation: Partnered in the development of Thang Long Industrial Park, with investments totaling over $200 million since its inception in the late 1990s.
  6. AEON Mall: Invested around $200 million in AEON Mall Long Bien, opened in Hanoi in 2015.
  7. Vingroup: Allocated billions of dollars in various projects across Hanoi, including the Vinhomes Ocean Park project announced in 2019.
  8. T&T Group and Hitachi Zosen Corporation: Committed to a $65 million waste-to-energy project in 2017.
  9. Hyundai Motor Company: Investment details for the Hanoi assembly plant are not publicly disclosed but are part of Hyundai’s broader investment in Vietnam, which totals in the hundreds of millions of USD.
  10. BRG Group: Invested in several golf courses and real estate projects, with investments amounting to hundreds of millions of USD over the years.
  11. Mitsubishi Corporation: Involved in multiple projects, including a significant investment in residential development with a joint venture worth over $290 million announced in 2016.
  12. Hanwha Aero Engines: Invested $200 million in its Hanoi facility for manufacturing aircraft engine components, announced in 2017.
  13. Nidec Corporation: Committed over $400 million in total to its facilities in Hanoi for electric motor production since 2012.
  14. Central Group (Thailand): Invested $1.14 billion for the acquisition of Big C Vietnam, including its stores in Hanoi, in 2016.
  15. Mapletree Investments (Singapore): Invested over $1 billion in Vietnam, with significant projects in Hanoi, including Mapletree Business Centre.
  16. CapitaLand (Singapore): Has invested hundreds of millions of USD in Hanoi’s real estate market, with ongoing projects as of the early 2020s.
  17. Shinhan Bank (South Korea): The investment figure for Hanoi is part of Shinhan’s broader expansion in Vietnam, totaling several hundred million USD.
  18. Keppel Land (Singapore): Invested over $300 million in the Sedona Suites Hanoi and other projects as of the late 2010s.
  19. Samsung SDS: Investment figures for logistics and IT solutions in Hanoi are not publicly disclosed but are part of Samsung’s significant investment in Vietnam.
  20. Korea Land & Housing Corporation: Involved in smart city projects with a reported investment of over $1 billion in partnership with local entities.

FDI (projects, accumulated)


FDI (accumulated capital, million USD)


FDI (projects, 2022)


FDI (capital, 2022, million USD)


Hanoi GDP Growth Rate (Historical)
Note: %
Hanoi GDP per Capita (Historical)
Unit: Nominal GDP, in Current USD

Industrial Landscape

The industrial estate landscape in Vietnam, particularly in the Northern Key Economic Region (NKER), has shown significant growth and dynamism in recent years. As per the latest reports from Cushman & Wakefield, the Northern Industrial Market has become a spotlight for investment, mainly in the Industrial Park (IP) land and Ready-Built Factory (RBF) segments. The data indicates a robust demand and an ongoing supply expansion that signals a maturing and increasingly attractive market for investors and enterprises alike.

In the IP land segment, there was approximately 14,600 hectares of leaseable land with an occupancy rate of around 73%. The average asking price for primary IP land stood at around USD 125 per square meter on a lease term basis. The market saw a positive quarter-over-quarter (QoQ) and year-over-year (YoY) growth in both net absorption and asking prices. Hai Duong and Hung Yen provinces led the way in terms of net absorption, contributing significantly to the overall market growth. This demonstrates the region’s capacity for industrial development, bolstered by new land supply from developments such as the Thang Long II IP.

The RBF segment has also exhibited strong performance, with an overall supply of approximately 3,500,000 square meters and an occupancy rate of 74%. The average asking rent remained stable QoQ at USD 4.9 per square meter per month, marking a modest increase YoY. The net absorption was impressive, with significant contributions from Hai Duong, Hai Phong, and Vinh Phuc provinces. This segment’s demand was driven by electronics, computers, and optical products, indicating a healthy diversification of industries in the NKER.

On the other hand, the RBW (Ready-Built Warehouse) segment showed a different trend with a total supply of around 2,200,000 square meters and a lower occupancy rate of 70%. Despite the addition of significant new supply from projects such as the IDEC Logistics Center and Mapletree Logistics Park, the net absorption decreased sharply QoQ. This suggests that the RBW segment may be experiencing a period of adjustment, reflecting global economic uncertainties and a realignment of supply and demand in the sector.

Looking ahead, the market outlook for 2024 to 2026 forecasts a substantial influx of IP land supply, estimated at around 5,500 hectares across seven provinces in the NKER. For RBF, a future supply of about 1.0 million square meters is expected, with demand projected to be sustained by the manufacturing sector, particularly supporting enterprises in the electronics and automotive sectors. However, the RBW supply is anticipated to taper off, with a lower compound annual growth rate (CAGR) compared to the previous period.

  • Employment, Population, National Account: General Statistics Office
  • Infrastructure: Fitch, World Bank
  • Industrial Real Estate Capacity: MarketBeat Report (Cushman)
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