Asian Firms Drive FDI Surge in North Vietnam Industrial Zones

Asian FDI Targets Northern Vietnam

Adjustments in global supply chains are directing increased Asian investment into northern Vietnam. The region's upgraded transport infrastructure, strategic connectivity, and new industrial parks are enhancing its appeal for manufacturing operations.

Haiphong city is bolstering its position as a foreign investment destination, supported by established industrial hubs such as Vietnam-Singapore Industrial Park (VSIP) and new developments like An Phat 5 Industrial Park.

Asian businesses have recently moved manufacturing facilities to Vietnam, particularly in supporting industries, electronic components, and AI-related production.

Expanding Industrial Land and Occupancy

This relocation trend is driving greater demand for industrial land and higher infrastructure quality. Northern Vietnam's cumulative industrial land supply exceeded 25,200 hectares by the end of the second quarter of 2026, according to Cushman & Wakefield's Northern Key Economic Zone Industrial Markets Q2/2026 report.

This figure represented a 15.7 per cent year-on-year increase. Haiphong accounted for the largest portion of this supply at 26 per cent, with Bac Ninh following at 21 per cent. The occupancy rate for ready-built factories remained strong at 86 per cent, indicating sustained demand for rapidly operational manufacturing facilities.

Infrastructure Boosts Connectivity

Northern Vietnam is accelerating investments in strategic transport infrastructure to support this expansion. A key project is Gia Binh International Airport, which is planned to meet ICAO Code 4F standards. It aims for an annual capacity of 30 million passengers and 1.6 million tonnes of cargo by 2030.

Road projects, including the link between Gia Binh Airport and Hanoi, along with the Ring Road 4 in the Capital Region, are being fast-tracked. These initiatives will improve connectivity among major industrial centres such as Hanoi, Bac Ninh, and Haiphong, enhancing access to international markets. Several infrastructure components are expected to commence phased operations in 2027.

An Phat 5 IP Prepares for Operations

An Phat 5 Industrial Park in Haiphong, developed by An Phat High-Tech Industrial Park JSC (An Phat Complex) as part of An Phat Holdings, highlights this investment trend. Approved on August 31, 2023, the 150-hectare park's essential infrastructure is largely complete, with cleared plots available for investors in phases.

The entire infrastructure system is expected to finish in 2026, targeting integrated operations from the first quarter of 2027. An Phat 5 IP aims to attract high-tech and innovation-driven businesses in sectors including electronics, IT, and mechanical engineering.

A Chinese investor noted An Phat 5's road, sea, and rail connectivity to China as crucial for optimising raw material imports and finished product exports.