Delegates attended the project's ground breaking ceremony on Thursday. — Photo provided by the agency

HẢI PHÒNG — KCN Vietnam Group has begun construction of a new industrial facility project in Hải Phòng, aiming to expand the supply of ready-built factories and warehouses in northern Việt Nam.

The project, called KCN Phúc Điền-Hải Phòng, is located in the Phúc Điền Expansion Industrial Park and covers about 18.7ha, according to the company. It is expected to provide more than 116,000 square metres of leasable industrial space once completed.

It marks the fourth major project by KCN Vietnam in the north and is part of the group’s strategy to expand its portfolio of ready-built factories and warehouses in key industrial hubs.

KCN Vietnam Group Chief Operating Officer Hardy Diec said: “Building on the momentum of our northern projects, KCN Phúc Điền-Hải Phòng reflects our continued commitment to strengthening the region’s industrial infrastructure capacity.

"In 2026, we will concentrate our resources on key industrial hubs with strong connectivity and established manufacturing ecosystems, including Đồng Nai, HCM City (formerly Bình Dương) and Bắc Ninh."

"Beyond delivering ready-built factory and logistics solutions, we are advancing the adoption of green building practices and optimising design standards to support investors in enhancing operational efficiency and long-term competitiveness within the global supply chain,” he added.

Demand for such facilities has grown alongside the expansion of the region’s industrial property market.

According to a 2026 outlook report by CBRE Group, the supply of ready-built factories in northern Việt Nam rose sharply between 2024 and 2025, reaching about 700,000 square metres last year, with strong occupancy rates.

First-tier industrial locations like Hải Phòng recorded occupancy rates of about 75.4 per cent for ready-built warehouses and 85.8 per cent for ready-built factories.

Hải Phòng has become a major destination for foreign investment in northern Việt Nam. As of the end of 2025, the city had 1,768 active foreign-invested projects with total registered capital exceeding US$50 billion and reported gross regional domestic product growth of over 11.8 per cent, according to the company statement.

KCN Vietnam said the project’s location along the Hà Nội-Hải Phòng economic corridor would provide tenants with access to seaports, airports and an established industrial workforce.

The development would include a mix of ready-built factories and warehouses designed to support manufacturing and logistics operations, with environmental standards and fire safety measures incorporated into the construction plan. — VNS