Vietnam's industrial real estate market is undergoing a strong transformation and is becoming a bright spot in a fluctuating global economic environment.
With a stable GDP growth rate of approximately 6-7% per year, a continuous influx of FDI into manufacturing and high-tech sectors, and a synchronously upgraded transportation infrastructure system, this segment is reshaping the national investment map.
The occupancy rate at key industrial parks reaches 80-89%, while industrial land lease prices increase by 4-5% per year, reflecting the attraction from the global production shift wave and the "China +1" strategy of multinational corporations.
Growth momentum from FDI inflows and supply chain shifts: Vietnam attracted USD 38.23 billion in FDI in 2024, focusing on high-tech projects such as semiconductor chip manufacturing, electronic components, and renewable energy. Corporations like Samsung, LG, and Foxconn continue to expand their operations, creating a demand for 1.2 million m² of factory space in Ho Chi Minh City and Hanoi. This trend is driven by the strategic geographical location in the Asia-Pacific supply chain, along with corporate tax incentives reduced to 10% for high-tech projects.
Spatial Distribution and Price Fluctuations: The Northern region recorded an absorption area of 400 hectares in 2024, concentrated in Hai Phong and Bac Ninh, with an average rental price of USD 137/m², up 4.2% year-on-year. Meanwhile, the Southern region maintained an 89% occupancy rate in key industrial parks such as Binh Duong and Dong Nai, where rental prices reached USD 175/m² due to demand from the logistics and e-commerce sectors. Notably, the Central region is emerging as a new destination with competitive prices of USD 60-90/m², attracting billion-dollar projects from Luxshare and Foxconn in Nghe An.
Development Model Transformation: Instead of the traditional model, new-generation industrial parks are integrating three layers of services: smart infrastructure (IoT, 5G), auxiliary business ecosystems, and multifunctional amenities (R&D centers, worker housing). The high-rise factory model, which saves 40% of space and allows flexible module leasing, is being implemented in many provinces and cities such as Ho Chi Minh City, Binh Duong, Dong Nai, Tay Ninh, Ba Ria-Vung Tau, Long An, Hai Duong, Bac Ninh, and others.
The Vietnamese industrial real estate market is witnessing significant development trends. Thus, new investment opportunities are opening up in many regions, from key economic zones to emerging provinces and cities.
Green Industrial Infrastructure Development: The government aims for 30% of industrial parks to achieve LEED/green certification by 2030, creating opportunities for projects using recycled materials, rooftop solar energy systems, and circular wastewater treatment. The Korea Industrial Complex Project in Hung Yen, with a total investment of VND 6,083 billion, is a prime example of this trend.
Expansion into Tier 2 Markets: Provinces like Dak Lak, Phu Tho, and Tay Ninh attract investors thanks to abundant land reserves and special incentive policies. The 313-hectare Phu Xuan Industrial Park Project in Dak Lak and the Bac Dong Phu Industrial Park Phase 2 in Binh Phuoc promise rental yields of 12-15% per year due to land prices being 40% lower than in key regions.
Modern Logistics and Multimodal Warehousing: Demand for industrial cold storage serving the food and pharmaceutical industries is projected to increase by 25% per year, while regional distribution centers (RDCs) in Cai Mep (Ba Ria-Vung Tau) and Lac Hong (Hai Phong) are facing a shortage of 500,000 m² of space. Investors can combine smart warehouse models integrated with AI for inventory management and cross-dock systems to optimize the supply chain.
Industry 4.0 and Innovation: The deployment of 5G in key industrial parks enables the application of autonomous robots and real-time production monitoring systems. At Hoa Lac Hi-Tech Park, the "digital factory" model using digital twins is being piloted by Nestlé and Intel, expected to save 15% in operating costs.
Development of Closed-Loop Industrial Ecosystems: The trend of forming specialized industrial clusters is gaining momentum, such as the electronics cluster in Bac Ninh - Vinh Phuc or the textile and garment hub in Long An. These industrial parks integrate from raw materials to auxiliary production, reducing logistics costs by 30% for businesses.
Adapting to the Global Minimum Tax Policy: According to OECD regulations, multinational corporations must pay a minimum tax of 15% from 2024, encouraging them to invest in green infrastructure and employee welfare. This opens up opportunities for high-standard worker housing projects and vocational training centers in industrial parks.
Although Vietnam's industrial real estate market has many development opportunities, it also encounters considerable challenges. Tackling these challenges necessitates suitable policies, substantial business investment, and the participation of management agencies.
Planning and Legal Risks: In 28% of provincial-level industrial parks, overlapping planning necessitates mechanisms for coordination across sectors. The Ministry of Planning and Investment is piloting the use of a GIS digital platform for managing industrial land in 15 provinces.
Competitive Pressures from Neighboring Countries: To sustain its edge over Thailand and Indonesia, Vietnam must enhance its logistics index (currently positioned at 39 out of 160) by advancing deep-sea ports and bonded warehouse infrastructure. The projects for Cai Mep port and the Lao Cai - Hai Phong railway connection are being accelerated.
Energy Transition in Industry: According to commitments at COP28, at least 20% of electricity in industrial parks must come from renewable sources by 2030. The PPP model in rooftop solar installation and energy storage battery systems is being encouraged through tax incentive mechanisms.
According to the Vietnam Industrial Real Estate Yearbook – Development Planning to 2030, Vietnam's industrial real estate market faces a "golden" opportunity to become ASEAN's smart manufacturing hub, especially in high-tech and logistics industries.
Investors should focus on three pillars: Developing green industrial parks integrating renewable energy; Building closed-loop industrial ecosystems along the value chain; and Applying digital technology in infrastructure management.
At the same time, balancing growth and sustainable development through strict environmental monitoring mechanisms will be the key to maintaining the long-term attractiveness of this segment.
(According to The World and Vietnam Report)
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