Northern Vietnam to see nearly 640,000sqm of new logistics stock

Around 50,000sqm entered the market in Q2 alone.

Northern Vietnam's ready-built warehouse market recorded strong leasing activity in the second quarter of 2026, with positive absorption driving a sharp reduction in vacancy even as substantial new supply is set to enter the market, according to JLL.

Net absorption reached 145,000 sqm in Q2, reducing the vacancy rate by five percentage points quarter-on-quarter to 32.7%. JLL said demand continued to be supported primarily by domestic consumption and electronics exports, attracting both domestic and international occupiers.

The market added nearly 50,000 sqm of new supply during the quarter in the former Hai Duong and Bac Ninh provinces, with KCN and Frasers Property among the developers contributing space. JLL said the addition strengthened KCN's position as an emerging market player, with a 6% market share.

BWID and Mapletree retained their leading positions in the Northern prime ready-built warehouse market, according to JLL. Mapletree is also expected to deliver substantial additional supply towards the end of 2026.

The incoming pipeline is significant. JLL expects approximately 640,000 sqm of new stock to enter the Northern market in the near term, primarily in the former Hung Yen and Bac Ninh provinces. Frasers Property, Mapletree and SLP are among the major developers expected to contribute to the expansion.

Average rents increased modestly by 0.3% quarter-on-quarter to USD 5.10 per sqm per month. JLL said pricing remained relatively stable as developers maintained their strategies despite intensifying competition from new supply.

Capital values continued to rise following asset improvements, while market yields remained unchanged at 8.2% for the past two years. JLL said the stable yield level reflects a cautious approach to investment in the current environment.

Looking ahead, JLL expects the Northern market to continue expanding, although global supply chain uncertainties and geopolitical tensions in the Middle East could create fluctuations in demand and keep investors cautious. The brokerage said domestic consumption and electronics exports are likely to remain the principal growth engines.