With a solid foundation, increasing investor confidence, and strategic government support for sustainable and high-tech development, Vietnam’s industrial real estate market is well-positioned to become a regional leader in the era of sustainable prosperity.
Vietnam’s industrial real estate sector is poised for growth, driven by policy reforms, increased foreign investment, and new and expanded industrial zones. By 2030, the country will add 221 new zones, expand 76, and adjust 22 under approved local planning schemes.
The acceleration of legal obstacles removal in recent industrial real estate projects is creating growth opportunities for many businesses participating in this segment. Notably, this is also one of the key factors contributing to attracting investment and boosting growth for real estate in 2025.
According to Savills Vietnam, a more favourable real estate investment environment is expected in 2025 as cyclical challenges subside and the market continues its recovery.
Vietnam’s industrial real estate sector is expected to experience robust growth in 2025, driven by domestic economic growth factors such as foreign direct investment (FDI), infrastructure development, and an improved investment environment.
With enhanced investment and Government’s support, the semiconductor industry has a pivotal role to play in the growth of Vietnam’s industrial real estate, according to a Savills Vietnam expert.
Steady annual growth in FDI is a key driver of industrial real estate in Vietnam, according to Savills’ Asia Pacific Investment Quarterly report for the third quarter of the year.
Driven by the surging demand for semiconductor manufacturing and assembly, companies are actively seeking factories and industrial parks with necessary infrastructure and services, according to Thomas Rooney, Senior Manager of Industrial Services at Savills Vietnam.
The industrial real estate market, particularly in the southern region, held steady in the first months of this year, which experts said was mainly thanks to rebounding imports and exports, and increasing influx of foreign investment.
The industrial real estate segment has emerged as a driver of the property market after sailing through the economic storm last year thanks to the foreign direct investment (FDI) influx, experts have said.
The industrial real estate market in the south was vibrant and thriving in the third quarter, with many ready-built factories and warehouses entering the market, according to real estate research companies.
Industrial real estate has been a bright spot in the market thanks to a large amount of foreign investment inflows, great potential and high absorption capacity, according to experts.
The real estate sector ranks second in foreign direct investment (FDI) attraction in the first quarter of 2023 with 766 million USD, accounting for 14.1% of total FDI.
Vietnam’s industrial real estate sector has great potential for developing more projects related to data centres, cold storages and logistics, according to John Campbell, Associate Director, Head of Industrial Services at Savills Vietnam - the largest and most experienced real estate services company in the Southeast Asian nation.
The industrial real estate sector has good prospects in 2023 due to short supply, a shift in the supply chain to Vietnam and its favourable investment policies, experts said.
Vietnam’s industrial real estate in Vietnam has the potential to grow as demand continues to rise due to a shift in supply chain to the country, according to Savills Vietnam.
The industrial real estate sector will likely continue to pick up in the remaining months of the year thanks to the ongoing global supply chain disruption and diversification, and the trade deals that Vietnam has signed, experts said.
Vietnam’s logistics industry has yet to have its potential fully tapped, and the country needs timely solutions to meet the surging demand for logistics infrastructure.
