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Exploring the Promising Warehouse Market in Northern Vietnam

As businesses increasingly look towards global expansion, Vietnam's northern region has emerged as a promising hub for logistics and warehousing. The demand for warehouses, especially for general and dedicated purposes, has been on the rise, driven by the region's geographical advantages and well-developed infrastructure. This growing market is particularly conducive for storing electronic components and finished products. The influence of the "China+1" strategy and ongoing urbanization has further solidified the north's role as a pivotal center for logistics and manufacturing. It is anticipated that this area will continue to attract major manufacturing firms, leading to a sustained growth in the warehouse sector even in the future.

Overview of the Report

Published by ONE-VALUE Co., Ltd. on April 3, 2025, this comprehensive report spans 33 pages (excluding corporate introduction pages) and is available in PDF format for purchase. Interested parties can obtain pricing information through the designated inquiry form. The purchase process will culminate in an invoice and bank transfer. Additionally, the report is accompanied by related services such as workshops and consulting for businesses aiming to penetrate the Vietnamese market.

The document encapsulates the latest developments regarding revised land laws, real estate business regulations, and housing laws in Vietnam, presenting a detailed analysis of the northern warehouse market’s characteristics.

Characteristics of the Northern Warehouse Market

The northern region exhibits rapid growth in the warehouse sector with increasing demand for dedicated spaces tailored for manufacturing and logistics companies. The area's advantageous geographical position, combined with its advanced infrastructure, fortifies its status as a vital logistics hub. With 61% of the nation’s expressway network situated in the north, the region provides strategic access for distribution.

Rental costs for industrial land in the north remain lower than those in the south, and labor costs for warehouse personnel are also comparatively cheaper. A remarkable statistic is that the average annual cargo handling per square meter in warehouses in the north is 77 tons, making it one of the highest in the country, second only to the central region.

Growth and Challenges in the Warehouse Sector

The report delves into various facets of the warehouse market's growth in the northern region, largely propelled by the increasing need for storage solutions for import and export components. Logistic firms and forwarders constitute roughly 50% of warehouse end-users, further emphasizing the demand surge. There is also a growing need for high-quality warehouse systems that can cater to valuable goods, such as electronic components.

However, challenges loom over the market, including a diminishing supply of industrial land in key logistics locations, which has led to skyrocketing land prices particularly in Hanoi, Bac Ninh, and Hai Phong. Additionally, the market is fragmented, with a plethora of small players contributing to intense price competition. The geographical limitations of the north also mean that demand for refrigerated warehouses is not significantly high due to unsuitable conditions for aquaculture.

Data-Driven Insights

Utilizing statistics and data from Vietnamese governmental agencies and local reports, alongside insights from hearings conducted, the report builds a compelling structure with logical arguments regarding the dynamics of the northern warehouse market.

Table of Contents

1. Executive Summary
2. Infrastructure Development in the North
3. Government Policies Affecting Economic Growth in the North
4. Average Land Rental Prices by Region
5. Shipment Volume and Warehouse Area by Region (2023)
6. Average Income of Logistics and Warehouse Workers by Economic Region (2023)
7. Growth and Trends in the Warehouse Market
8. Overview of Major Market Players and Competitive Analysis

This report serves as a critical resource for businesses considering investment and operations in Vietnam's dynamic market landscape, especially in the warehouse and logistics sectors.

About ONE-VALUE Co., Ltd.

Since its inception, ONE-VALUE has specialized in utilizing Vietnamese human resources and management consulting services. The company provides clients in various industries with in-depth expertise and rich practical experience regarding business development between Japan and Vietnam. With a strong focus on Vietnam, ONE-VALUE leverages a wide network and deep industry knowledge to deliver effective solutions for customers.

For more information on the report and services offered, visit ONE-VALUE’s website or Vietbiz for insights into Vietnam’s business landscape.