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The merger of Hai Phong city and Hai Duong province is opening a new chapter in socio-economic development in the Red River Delta, with industrial real estate emerging as one of the sectors with the greatest potential for strong breakthroughs.
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A boost from the merger
Over the past years, Hai Phong stood out as a national leader in attracting foreign direct investment (FDI), particularly to industrial and logistics sectors. Major industrial parks such as VSIP, Deep C, Trang Due, and Nam Dinh Vu became symbols of well-planned and synchronized industrial attraction and development capacity.
Before the merger, Hai Duong had up to 18 operational industrial parks and was a fertile land for investors, attracting nearly 158 million USD in FDI in the first four months of 2025 alone.
The merger of Hai Phong city and Hai Duong province created a vast land reserve for industrial development while enhancing the seamless connection of production and transport infrastructure from industrial parks to Lach Huyen international seaport, Cat Bi airport, and inter-regional expressways and railways.
A noteworthy trend in today’s industrial real estate development is the rising demand for sustainable, eco-friendly models. Pham Hong Diep, Chairman of the Board of Directors of Shinec JSC., the developer of Nam Cau Kien ecological industrial park in Thien Huong ward, emphasized that symbiotic business models within industrial parks are becoming a necessity, especially as the newly merged area has sufficient land and resources.
“We are developing the industrial park in a closed-loop circular direction, with zero waste discharge, reduced carbon emissions, and lower logistics costs. This sustainable, innovative approach can be replicated across new industrial parks in Hai Phong after the merger,” Diep noted.
Industrial real estate development
Real estate experts agree that now is a “golden time” to invest in industrial real estate in the newly merged Hai Phong city. PhD. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors, believes the merger will form a large-scale industrial–urban–logistics economic zone capable of competing with major industrial hubs across Asia.
Accordingly, demand for factories, warehouses, logistics centers, and housing for experts and skilled workers is expected to rise sharply over the next 5 to 10 years. If local authorities can swiftly finalize planning and prepare clean land banks, the market will attract new FDI inflows from Japan, South Korea, the US, and Europe.
Experts have also offered several development recommendations, including promoting the construction of ecological industrial parks, prioritizing green infrastructure and renewable energy, advancing smart logistics, and strictly controlling land speculation to ensure a healthy and sustainable market.
Recent market developments have shown many positive signs. Numerous major domestic and international investors are actively scouting opportunities in areas such as Thanh Ha and Tu Ky communes of Hai Phong city.
In this context, rapidly completing the regional master plan, expediting site clearance, attracting strategic investors, and adopting modern industrial development models will be the keys to transforming post-merger Hai Phong into a model “industrial–seaport–urban hub” in northern Vietnam, and soon affirming its position on the industrial map of Asia.
THU HANG
