Vietnam's industrial real estate is shifting from broad-based growth to a selective cycle as high-tech FDI flows, ESG requirements and supply–demand divergence reshape the criteria investors apply when choosing a site.
The steady-and-solid segment of the new phase
Reports from Savills and Knight Frank show southern industrial park occupancy above 90% with limited new supply, while the North absorbed 192 hectares in H2 2025 — outpacing the South. Industrial land rent runs around USD 174 per m² per lease cycle in the South and around USD 137 in the North, reflecting different room for expansion between the two regions.
Ready-built factories continue to record absorption above 90% in both regions. Demand concentrates in projects that meet operating standards for semiconductors, electronics, high-tech manufacturing, data centres, AI, EV batteries and electric vehicles — the sectors leading new space requirements.
Sustainable growth or deeper divergence?
Forecasts for 2026–2027 point to more than 1.4 million m² of additional warehouse supply, concentrated in Dong Nai, Long An, Bac Ninh and Hai Phong. New formats are emerging: multi-storey factories, 3PL warehouses serving e-commerce, and hybrid industrial-tech-urban complexes.
ESG requirements, green energy and automation capability are becoming tenant-selection filters. For operators, differentiation no longer lies in holding land but in delivering compliant ready-built factories, clean legal title and operational services that shorten the time for FDI tenants to move into production.
Source: Bao Dau Tu – Industrial real estate enters a selective cycle.
