Why Asian FDI is flowing into northern Vietnam s industrial parks

Northern Vietnam is attracting significant foreign direct investment (FDI) to its industrial parks, particularly in the northern region. Key industrial hubs such as Vietnam-Singapore Industrial Park (VSIP), DEEP C, and Trang Due are being complemented by new projects like An Phat 5 Industrial Park. This trend is driven by Asian businesses seeking to diversify their global supply chains, focusing on supporting industries, electronic components, and AI-related manufacturing.

The demand for industrial land in northern Vietnam has surged, with the cumulative industrial land supply exceeding 25,200 hectares by the end of Q2 2026, a 15.7% increase compared to the previous year. Haiphong city leads the way, accounting for 26% of the total supply, followed by Bac Ninh at 21%. Occupancy rates in the ready-built factory segment remain strong at 86%, indicating sustained demand for quickly deployable manufacturing facilities.

To bolster connectivity and logistics, northern Vietnam is accelerating investments in strategic transport infrastructure. Gia Binh International Airport, set to meet ICAO Code 4F standards, is planned to have an annual capacity of 30 million passengers and 1.6 million tonnes of cargo by 2030. The airport's road connection to Hanoi and the Capital Region’s Ring Road 4 project are being expedited, aiming for phased operationalization in 2027.

An Phat 5 Industrial Park, located in Haiphong city within the An Phat Holdings ecosystem, has completed most of its essential infrastructure and is ready to hand over cleared plots to investors in phases. The project targets high-tech, innovation-driven sectors, including electrical and electronic equipment, IT, mechanical engineering, and machinery manufacturing.

Its strategic location, offering convenient connectivity via road, sea, and rail networks, makes it an attractive option for Asian investors looking to expand production capacity.