The site-selection question: for the same 5-hectare plant, how much does land rent differ over 50 years between Bac Ninh and Binh Duong? Industrial land rent is the second-largest capex item after construction — and the North–South gap is wide enough to swing the decision.
Latest data: the South costs nearly 30% more
Per CBRE data cited by SSI Research in its Q2 2026 report: average asking rents in the North reached $143/sqm per lease term (up 2.9% year-on-year); the South reached $185/sqm per lease term (up 3.7%). Occupancy stays high at 82% nationwide. For a 5-ha (50,000 sqm) plot, the gap totals $2.1 million over the full term — not a rounding error in any financial model.
Why is the South more expensive?
Three reasons: (1) industrial land around Ho Chi Minh City is running out, high occupancy pushes prices up; (2) completed port connectivity (Cat Lai – Cai Mep) means lower logistics costs that offset higher rent; (3) dense supporting-industry clusters with suppliers within 50 km. The North is cheaper but rising fast on electronics and semiconductor capital (Samsung, Foxconn expansions) plus improving Lach Huyen port and expressway infrastructure.
Lease land or rent ready-built factories?
Ready-built factories and warehouses average around $5/sqm/month (up 2%), suiting firms needing production within 3–6 months or under 1 ha. Leasing land and building suits large, long-cycle projects with special requirements (cleanrooms, heavy floor loading). The 2026 trend: high-tech tenants lean toward land leases over ready-built space — land absorption rose 60% in the first half of the year.
Legal notes on industrial-zone land leases
FDI firms typically sublease from the zone’s infrastructure developer — verify: (1) the developer holds land-use certificates and is licensed to sublease; (2) the remaining term of the zone; (3) one-off vs annual rent payment (affects depreciation and mortgaging); (4) termination and compensation clauses on state land recovery. SSI Research expects rents to flatten in 2027 as ~1,347 ha of new supply enters with competitive pricing — a favorable negotiating window for investors.
Frequently asked questions
What are current industrial land rents, North vs South?
Q2 2026: North $143/sqm, South $185/sqm per full lease term (CBRE data via SSI Research).
Lease land or rent ready-built factories?
Ready-built (~$5/sqm/month) suits fast entry and small scale; land leases suit large, long-term, specialized projects.
Can FDI firms lease land directly?
Usually via sublease from the zone infrastructure developer; verify sublease rights and remaining term.
What is the 2027 outlook for industrial land rents?
SSI Research expects flat pricing as ~1,347 ha of new supply comes online with competitive strategies.
FLAT Law Firm conducts legal review of industrial-zone land leases for foreign investors — from developer due diligence and term negotiation to land-use registration.