Administrative Boundary Mergers: A Launchpad for Industrial and Infrastructure Growth

The government’s administrative boundary consolidation initiative has created significant opportunities to develop new industrial zones and expand existing ones to meet evolving development needs.

At the end of May 2025, the People’s Committee of Binh Thuan Province hosted an investment promotion conference in Ho Chi Minh City, introducing over 500 hectares of ready-to-use industrial land. The province committed to fully supporting both domestic and international investors. This includes areas like Tan Duc Industrial Park (300 ha), and Ham Kiem 1 and 2 Industrial Parks (over 200 ha). By 2026, Binh Thuan aims to raise the occupancy rate of its industrial parks to over 60%.

Currently, the province has 9 industrial parks totaling nearly 3,000 ha. By 2030, the plan is to expand to 16 parks with a combined area of nearly 8,000 ha, focusing on attracting investment in manufacturing and renewable energy sectors. Ahead of its planned merger with Lam Dong, Binh Thuan is also preparing a 85-ha coastal development project for tourism and economic growth, with an investment of nearly VND 9,500 billion.

In Ninh Binh, a mid-May 2025 zoning revision approved the expansion of Tam Diep II Industrial Park from 363 ha to 386 ha, adding nearly 23 ha for clean industry, high-tech, and innovation support. As of now, Ninh Binh has planned 7 industrial parks totaling 1,433 ha, of which 5 are operational on nearly 850 ha. By 2030, the province aims for 12 parks covering approximately 2,813 ha.

Nationwide, from the start of 2025 to present, authorities approved 14 industrial park projects with a total of over 4,100 ha, mainly in key economic regions in the North and South. These include prominent provinces like Bac Giang (3 parks), Hai Phong (3), and Binh Phuoc (2).

In Ho Chi Minh City, the 2021–2030 master plan includes 14 new industrial parks covering 3,833 ha. Meanwhile, Hanoi plans to add 9 industrial parks totaling 2,911 ha between 2025 and 2030.

According to industry analysis, the merging of provinces and cities aims to optimize regional planning and economic development, serving as a new driver for the industrial real estate sector. These changes are expected to unify the planning of industrial zones, logistics hubs, and urban areas, leading to the creation of new industrial centers.

With synchronized regional plans, northern provinces such as Bac Ninh, Hai Phong, and Thai Nguyen are becoming more attractive to investors. In the South, repurposing rubber land is expected to provide new industrial supply.

Experts note that successful administrative mergers, coupled with inter-regional infrastructure development — including ring roads, seaports, airports, and digital systems — will allow industrial growth beyond traditional administrative boundaries. Businesses will benefit from broader access to labor and more competitive operating costs, potentially leading to a shift away from saturated industrial markets.

Emerging localities with large land reserves, competitive rental rates, and upgraded infrastructure are well-positioned to become the next industrial hubs.

According to one market analysis, the Government’s approval of 14 new industrial parks across Can Tho, Hai Phong, Thai Nguyen, Binh Phuoc, Bac Giang, Hai Duong, and Ba Ria–Vung Tau covers more than 4,100 ha and involves tens of trillions of dong in investment. These projects will not only expand industrial land but also attract capital and create jobs.

Some parks are being designed with modern features, including high-tech applications and sustainability measures, aligning with the green industry trend. One example is the Korea-Vietnam Integrated Industrial Park project in Hung Yen, with an investment of VND 6,083 billion.

With rising industrial land supply, Vietnam’s industrial real estate market is expected to remain active, drawing manufacturers, logistics providers, and tech companies. The country is also emerging as a regional hotspot for data center investment. For instance, Saigon Asset Management (SAM) has announced a $1.5 billion project for a 150 MW data center in Binh Duong in partnership with VSIP, with the first phase to be operational within two years.

As data storage needs grow globally, Vietnam’s strategic location, competitive operating costs, and open investment policies position it as a future data center hub in Southeast Asia. However, to attract more FDI and scale up, further development in power infrastructure, connectivity, and industry-specific incentives is essential.

New-generation industrial parks are also shifting away from the traditional model. They now incorporate three layers of services: smart infrastructure (IoT, 5G), a supportive enterprise ecosystem, and multifunctional utilities such as R&D centers and worker housing.

The adoption of multi-story factory models, which save up to 40% of space and offer modular leasing, is spreading to cities like Ho Chi Minh City, Binh Duong, Dong Nai, Tay Ninh, Ba Ria–Vung Tau, Long An, Hai Duong, and Bac Ninh.

Regarding green infrastructure, the Government aims for 30% of industrial zones to be certified green (LEED or equivalent) by 2030. This opens space for projects with recycled materials, rooftop solar, and water recycling systems.

Source: Securities Trading News