Textile workers at a factory in Thái Nguyên Province. VGP Photo

HÀ NỘI — Small- and medium-sized enterprises (SMEs), a backbone of the economy, are finding it difficult to secure space in industrial parks.

As Việt Nam pursues a more self-reliant economy and resilient supply chains, creating room and rules for SMEs to settle inside industrial parks has become urgent, local newspaper VnEconomy reported, citing economists and industry insiders.

Demand for smaller parcels of land and ready-built factories is rising fast, especially among technology firms, supporting industry suppliers and logistics service providers. The biggest barrier is fit: most parks have been laid out in very large plots, typically several hectares, well beyond the financial capacity and operational needs of most SMEs. This creates a barrier that excludes willing firms, leading to wasted resources and hampered growth.

The impact is tangible. Nguyễn Văn Nam, who operates an auxiliary mechanics company in Bắc Ninh, says his business is eager to benefit from the stable infrastructure and partner network offered by industrial parks. However, these parks typically lease plots ranging from three to five hectares - far more than his company requires. The firm only needs a few thousand square metres.

As a result, his company and many others like it operate in small, scattered clusters or even residential areas, leaving them exposed to infrastructure and environmental risks and limiting their ability to join larger supply chains.

The shift in market dynamics is reinforcing this pressure. With the boom in logistics and e-commerce, as sector revenue reached about US$85 billion in 2024, more firms are actively hunting for warehouse and factory space.

According to the Ministry of Finance, a growing number of SMEs and logistics start-ups are opting to lease ready-built, multi-purpose facilities instead of investing in greenfield developments. This shift helps reduce upfront capital requirements, accelerate operational timelines, and provide the flexibility to scale capacity in line with business cycles.

Foreign-invested SMEs share the same priorities: shortening time-to-market and reducing sunk costs. They are especially interested in modern ready-built factories that combine production areas with executive offices, product showrooms and supporting facilities. This setup makes management and operations easier, helps showcase products to customers and, crucially, makes production processes and locations transparent.

Bringing SMEs into industrial parks is therefore not only an issue of land allocation; it is a competitiveness strategy. Within a disciplined industrial ecosystem, SMEs can access standardised infrastructure, build credibility, and connect directly with FDI anchor manufacturers.

Dedicating land for SMEs helps form flexible, on-site supplier networks for large firms, creating a more closed-loop ecosystem that cuts logistics costs, improves agility, and lifts the overall competitiveness of the park. It also lays the groundwork for sustainable industry clusters.

Sensing this demand, some infrastructure developers are responding. Western Pacific, for example, has begun to spread its land planning across projects. At the Yên Lệnh Industrial Cluster in Ninh Bình province, service lots start from 1,000sq.m and industrial plots from 4,000 to 5,000sq.m. At Yên Phong II-A Industrial Park in Bắc Ninh, service land totals 17.5ha, with lot sizes planned more flexibly.

“This approach opens the door for service, trade, food and beverage, and lodging businesses to join in, creating a more diverse, connected ecosystem,” said Western Pacific Group Investment Director Nguyễn Kim Tuấn.

There are hurdles. Tuấn notes that land subdivision must be addressed early in zoning and detailed planning. Otherwise, investors face re-zoning, infrastructure reconnection, delays and higher costs. He suggests clearer policy guidance to remove these bottlenecks.

At the same time, he cautions businesses not to rely on discounted or allocated 'clean' state land, which typically requires public auctions and complex procedures. In reality, most industrial park land is owned by enterprises, so direct, market-based negotiation is often the more feasible route. —VNS