Vietnam North prime industrial supply expected to surge in 2026

Over 700,000sqm of new supply will materialise next year.

The prime logistics market in Vietnam North is expected to expand significantly in Q4 2025 with two projects under construction nearing completion BWID ESR Yen Phong expansion and Sembcorp Logistics Park Dinh Vu, according to a JLL report.

“The trend continues growing into 2026 with about 718,000 sqm of new supply. Recent progress in US tariff negotiations has created more optimistic market conditions, with demand expected to stabilize in the near term,” the report said.

Here’s more from JLL:

The medium-term outlook appears more promising, supported by anticipated domestic market recovery and improved economic stability. Looking ahead, the development of multi-story warehouses and smart logistics integration represents a key trend that will enhance market competitiveness while enabling investors to optimize land utilization and operational efficiency.

Market demand regains stability following a brief period of stagnation

Demand showed signs of recovery following a brief slowdown in Q2 2025, mainly driven by positive signals from recent US reciprocal tariffs bilateral negotiations. Despite cautious market sentiment, leasing activity demonstrated more encouraging trends.

Net absorption in Q3 2025 reached approximately 49,300 sqm, matching Q1 2025 but significantly below last year’s levels. Occupancy rates continued declining to 68% as abundant new supply required time for absorption.

Supply expands considerably, with the market embracing two-story warehouse developments in Bac Ninh (Bac Ninh)

The market saw robust growth in Q3 2025 with 313,000 sqm of new supply, bringing total stock to 1.79 million sqm. Key completions included BWID ESR Nam Son Hap Linh, LOGOI Yen Phong 2A, and Logicross Hai Phong.

Notably, Q3 2025 welcomed the introduction of two-story warehouses launched with high-standard technical specifications, expanding the portfolio of options for tenants.
Average rents see a modest uptick from the previous quarter, driven by premium pricing from newly launched projects

The average asking rents for modern warehouses in the Northern market reached USD 4.9/sqm/month, up 2.1% from the previous quarter.

This increase was primarily driven by asking rents from new projects, while existing project rents remained relatively stable.