Why Asian FDI is flowing into northern Vietnam’s industrial parks

Why Asian FDI is flowing into northern Vietnam’s industrial parks

Global supply chain shifts are boosting Asian investment in northern Vietnam, where upgraded transport infrastructure, strategic connectivity and new industrial parks are strengthening the region’s manufacturing appeal.

In northern Vietnam, alongside major industrial hubs such as Vietnam-Singapore Industrial Park (VSIP), DEEP C, and Trang Due, new projects such as An Phat 5 Industrial Park are helping strengthen Haiphong city’s position as a destination for foreign investment.

Global supply chain diversification has prompted Asian businesses to relocate manufacturing facilities to Vietnam in recent years, particularly in supporting industries, electronic components and AI-related manufacturing.

This trend is not only generating additional demand for industrial land but also raising expectations for infrastructure quality and logistics connectivity at industrial parks (IPs). As global supply chains are restructured, northern Vietnam is stepping up investment in transport infrastructure.

Artist’s impression of the mega-project Gia Binh International Airport, with initial facilities scheduled for completion in time for APEC 2027. Photo: An Phat Holdings

According to Cushman & Wakefield’s Northern Key Economic Zone Industrial Markets Q2/2026 report, northern Vietnam’s cumulative industrial land supply exceeded 25,200 hectares at the end of the second quarter of 2026, up 15.7 per cent on-year.

Haiphong accounted for the largest share, at 26 per cent of total supply, followed by Bac Ninh with 21 per cent. In the ready-built factory segment, the occupancy rate remained at 86 per cent, indicating sustained demand for manufacturing facilities that can be brought into operation quickly.

Against this backdrop, northern Vietnam is accelerating investment in strategic transport infrastructure. A notable project is Gia Binh International Airport, which is planned to meet ICAO Code 4F standards, with an expected annual capacity of 30 million passengers and 1.6 million tonnes of cargo by 2030.

At the same time, the road linking Gia Binh Airport with Hanoi and the Ring Road 4 project in the Capital Region are being fast-tracked. These projects are expected to strengthen connectivity among key industrial centres, including Hanoi, Bac Ninh and Haiphong, while improving access to international markets.

Notably, several infrastructure components are being expedited with a view to bringing them into operation in phases in 2027.

Over the longer term, shorter travel times between manufacturing centres, seaports and aviation gateways will improve transport efficiency and create a competitive advantage for new IP projects in northern Vietnam, including An Phat 5 Industrial Park (Luong Dien–Ngoc Lien) in Haiphong city, developed within the An Phat Holdings’ ecosystem.

Land at An Phat 5 Industrial Park is ready for handover to investors. Photo: An Phat Holdings

According to a representative of An Phat Complex, essential infrastructure at An Phat 5 IP which covers 150 ha in Cam Giang commune (Haiphong city) is largely complete, and cleared plots can be handed over to investors in phases.

The entire infrastructure system is expected to be completed in 2026, with the project being developed as a model IP in compliance with environmental, social and governance standards and targeting integrated operations from Q1 of 2027.

As Vietnam gradually transforms into a global manufacturing hub, An Phat 5 IP is actively broadening its reach to Asian investors seeking to expand production capacity.

The project is positioned as a high-tech, innovation-driven IP targeting businesses in electrical and electronic equipment, IT, mechanical engineering and machinery manufacturing, automation, supporting industries, construction materials and other suitable industrial manufacturing sectors.

An Phat Complex was introduced at Vietnam-China Trade, Investment and Technology Cooperation Forum in Nanning, China, on September 17. Photo: An Phat Holdings

From an investor’s perspective, strategic location and logistics connectivity are key considerations when selecting a site for a manufacturing facility.

A Chinese investor said, “We chose An Phat 5 because of its convenient connectivity between Haiphong and China via road, sea and rail networks, which helps optimise the import of raw materials and export of finished products. In particular, infrastructure development at the project is progressing on schedule, enabling businesses to plan their production activities.”

The implementation capabilities and infrastructure development experience of An Phat Complex have been demonstrated through projects such as An Phat Complex and An Phat 1 IP, as well as its cooperation with international companies including Biel Crystal, Ce-Link and Sumida.

An Phat 5 IP is well positioned to translate its infrastructure advantages and strategic location into tangible investment appeal, helping reinforce Haiphong city’s standing amid the global shift in manufacturing.

VIR